Warmly Yours’ Environ II.

By Louis Iannaco
Taking advantage of new products and their profitability is part of what separates successful flooring dealers and contractors from the not-so-successful. Radiant heating, a segment which has been in growth mode in recent years, has proven to be quite the profit maker for those willing to learn more about it and how to sell it. What had been out of sight (or under the floor) and out of mind is now top of mind with those wanting to make a profit.

“People are becoming more aware of radiant heating,” said Tom Meyer, principal of Precision Hydronics Corp. “If you know what you are doing, bid the correct system and you know how to compete against lower bids, and you know your craft, there is room for profitability. If you are a dealer there is money, all kinds of it.”

Steven Paske, national sales manager for EZ Floor, agrees with Meyer that education is key. “Being that this is only our second year in the market, I’m very excited about the potential for the product but I would say there is a lot of missionary work yet to be done in order to get sales to the point where we’d be pleased. It is an education process. The fact that the trade press is writing about radiant heating speaks to the potential and growth the radiant market is seeing.”

Nicolas Mottet, marketing communications manager for WarmlyYours, agreed. “Our sales have increased about 40% versus the same time last year. Basically, any homeowner remodeling her bathroom can buy a complete floor warming system for just $200 to $500. Very large bathroom, kitchen and family room floor warming systems are custom designed. A floor warming system for a very large bathroom will run about $700 to $1,000. In a kitchen it will cost a bit more, anywhere from $800 (warming of the main walking area) to $2,500 (for full flooring coverage including a separate breakfast/dining area).”

In discussing the segment’s profitability, Mottet noted, on top of product margins retailers also typically charge an extra $2 to $3 per square foot for laying out the electric floor warming system. The installation cost per square foot depends on the room size and local installation rate. It’s important to keep in mind that electric floor warming not only increases a bathroom or kitchen job’s overall profitability but also helps close the sale. A retailer offering the heated floor upgrade for a few hundred dollars to a female homeowner remodeling her bathroom or kitchen is more likely to close the flooring sale than a nearby retailer or home center not offering the option.

“It is also about customer satisfaction,” he said. “A homeowner enjoying her radiant-heated bathroom or kitchen floor is a lot more likely to brag about it and generate referrals. The new radiant-heated floor in the kitchen is definitely something they will talk about to their friends. Looking beyond the money numbers, it simply makes sense for a floor covering retailer to offer the floor warming upgrade system.”

Monica Irgens, president of Step WarmFloor, believes dealers selling and installing flooring products can add to their sales by offering an upgrade to their project knowing that customers do not like cold floors and they appreciate comfort and/or need heating in a specific area. “Dealers are already installing the floor covering and it is therefore easy for them to add an electric heating system to the job. They can thereby make a larger profit. Dealers have the ability to offer total house heating systems on floor warming heating systems.

“Most electric cable mats are sold for floor warming under tile or natural stone,” she added. “Because the elements are self-regulating, Step Warmfloor can be used for both total heating and floor warming under any type of floor covering.”

Education is important, Irgrens stressed, as salespersons must know the different types of heating systems available for the different applications. “They must always follow manufacturer’s specifications, standards, codes and sales practices to satisfy the different type of flooring materials. They must make sure the floor covering they are going to use is approved for that specific application. It is not sufficient that the product has an approval.”

NuHeat’s vice president of sales, Kevin McElroy, noted that, according to the Radiant Panel Association (RPA), the industry has been growing consistently 20% to 30% a year. He estimates North American retail sales of electric radiant heat to be approximately $200 million.

“We see dealers enjoying profits on materials in the 25% to 40% range,” he explained. “The NuHeat bath kit offers dealers profit opportunity on the high end of this range. Equally as importantly, it helps overcome the objection of tile being cold. We see installers enjoying profit on the materials and the labor. As NuHeat is very simple to install, it offers a quick and easy profit opportunity and is always guaranteed to make the homeowner happy.”

One of the keys to selling the different types of radiant heating systems is education for all involved in the selling process. As McElroy noted, “There is nothing complicated about the sale or installation of electric radiant heat, but some of the basics to keep in mind are: 1) Electric floor heating uses about the same power as the light bulbs in the room. 2) There is some misperception that it’s expensive to operate. 3) Coordination is required on the jobsite between the flooring installer and electrician. 4) Care should be taken with anything penetrating the floor (such as doorstops) to avoid piercing the system.”

Thermonet’s Vern Samuels said, “Dealers see approximately $4 per square foot additional ‘profit’ on every flooring/tile job they sell by simply adding Thermonet. Installers find Thermonet to be very easy to install because of the prespaced wires and mesh backing. Many people have had the notion that underfloor heating may be too warm or even hot—Thermonet’s system is regulated by a programmable thermostat to ensure the system is kept at the consumer’s preferred comfort level.”

There are two major applications for radiant floor systems: one is floor warming and the other is space heating, noted Larry Drake, RPA’s executive director. “Salespeople should be very aware of the difference between these two and the requirements of each.

“The salesperson should accurately define the customer’s expectations before selling a particular system,” he explained. “Are they interested in warm floors in a bathroom or are they trying to heat a four-season porch? Do they want to be able to turn on the floor and have a quick warm-up whenever they use the room, or do they want a constant temperature in the room? The salesperson must select the system to fit the expectation or help the customer define some realistic expectations.”

As Mottet noted, the pitfalls salespeople need to know about: “We find that homeowners often ask only a few questions about electric floor heating. They don’t ask about amps, watts or wiring questions [when they buy lamps or other household electric items they don’t ask these types of questions either].

“Salespeople, of course, should be familiar with the installation basics, but homeowners will often ask about:

• How much does it cost? It depends on your room size. Ballpark numbers are $300 to $500 with a bathroom floor warming kit, $600 to $1,000 for a very large bathroom, or $800 to $2,500 for a kitchen (it depends if the breakfast area/dining space is included).

• Is it safe? Yes, it is completely safe. The systems are all UL listed.

• Is it expensive to operate? To put the cost benefit of floor warming into perspective for customers, try thinking comparatively in terms of the amount of energy consumed by an average light bulb. Small bathroom: less than a 60-watt bulb; medium bathroom: less than a 100-watt bulb; large bathroom: less than a 150-watt bulb, and average kitchen: less than (3) 150-watt bulbs.

“WarmlyYours systems are designed to literally ‘sip’ electricity, requiring, on average, only five watts of power per square foot to maintain a tile or stone floor at 82 degrees,” he concluded. “Given recent trends in oil/gas costs, floor warming systems are sure to attract a growing interest for their energy efficiency.”