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Replacement Window Article
Replacement Windows Withstand RecessionAuthor: Scott Best While most things in the economy seem to be in a downward trend, replacement windows appear to be somewhat recession proof. Sales and installations of new replacement windows are considered to be holding steady by those in the replacement window retail and installation trade. Home owners who are staying in their homes have not given up on doing what they can to improve the quality and value of their homes. Many are doing this by installing new replacement windows from a variety of manufactures. Although retail sales are not necessarily on an upswing, replacement windows sales have not slumped as other retail markets have over the last year. RWI economist Peggy Ungler said that overall most economists have no real data so far as to why the replacement window market has been holding so strong in the face of such a strong economic down turn. Forward thinking would seem to suggest home owners are doing all they can to maintain the value of their homes through these tough times, while saving as much money energy wise as they can. Recent reports show the replacement window industry’s annual sales to be somewhere around $8 billion with only a 2.5% market share. That’s quite a large dollar figure for sales with such a small market share, figures that for many just don’t add up. What’s more, according to recent statistics, that dollar figure isn’t showing signs of wavering so far during this recession. When asked about the seemingly small market share, Ms Ungler stated she believed the reason for the overall small market share is because of the amount of mistrust that exists amongst buyers of replacement windows. She went on to say, there are so many unscrupulous fly-by-night operations out there that have truly hurt the industry’s market share. These less than reputable companies use high pressure sales pitches commonly alongside what is known as bait and switch tactics to increase profits. Bait and Switch suggests that the seller doesn’t show the original product or the actual product advertised but instead will demonstrate a more expensive product. Only later after a sales contract is pending does the seller explain to the customer what the differences in the products really are. They are trying to leverage the customer into buying the more expensive product which increases the company’s bottom line profit. Alternately, companies such as these will sell high quality windows at seemingly reduced prices installed. But in fine print in the contract there is usually a “gotch-ya” clause. Sometimes only installation is covered and not the removal of the old windows, which of course, they are glad to do for another inflated fee. Or no prevision is made for any necessary supporting labor or material cost, again another inflated fee. Ms. Ungler went on to state: these types of disreputable companies have played a significant role in stifling the overall growth of the replacement window industry. So much so that many times reputable dealers and contractors are afraid to mount any type of large scale sales campaign in fear of the backlash. They fear their reputations will suffer because of the amount of distrust the disreputable fly-by-night companies have propagated. Because of this, they have adopted a passive rather than an aggressive type sales strategy. Even so, the outlook for replacement windows during the recession looks to be encouraging in comparison to other industries for the time being. Industry leaders such as JELD-WEN, NORTH STAR, TRACO, CHAMPION and others are reporting sales that are holding steady for the moment. When asked if she thought this trend would continue to hold Ms. Ungler felt there was no usable data in recent history that could lend itself to building a reliable sales forecast for the replacement window industry at this time. At lease at this particular point in time, people seem to be willing to part with at least a portion of their disposable income to help bolster the value of their homes and to save energy in the face of every increasing global energy costs. How long or if this trend will continue during this depressed time is anybody’s guess. Things are too uncertain to predict even in the replacement window industry. One last note of caution is to be well informed and protect yourself if you do decide to invest in replacement windows in the near future. Deal with reputable companies, always check references and read the fine print of any sales contract. Do your homework, and know what you are getting for your money spent. Then again, there is always DIY. Copyright © 2009 Scott Best: All rights reserved Reprinted with special permission from Scott Best Articles.Com |
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