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Adding value to water heater install.

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  • Adding value to water heater install.

    With Rheem and AO Smith you can extend the manufacturer warranty by purchasing a warranty extension kit. The only physical component is the addition of an anode that fits in the hot water nipple opening. The rest of the warranty extension is paperwork. The cost ranges from $105 - $135.

    It seems the water heater manufacturers agree the extra anode is important in reducing the risk of premature failure. I had a local plumbing supplier get me a few of these anodes at a fraction of the above prices.

    As a plumbing contractor I've decided to make it a company policy to add this anode to every water heater I install. While not increasing the manufacturer's warranty the small cost of the anode will add value by increasing the life expectancy of the heater while simultaneously improving my customer's peace of mind about their purchase. Besides hopefully separating me from the competition this will lead to many happier...
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    Last edited by geno gardner; 11-04-2010, 06:25 PM. Reason: Improve clarity.
    Time flies like an arrow.

    Fruit flies like a banana.

  • #2
    Re: Adding value to water heater install.

    Those holes in the rod will not restrict flow?

    So what do you upcharge for the warranty...its 10 years, right?

    Comment


    • #3
      Re: Adding value to water heater install.

      Originally posted by NorthernIllinoisPlumber View Post
      Those holes in the rod will not restrict flow?

      So what do you upcharge for the warranty...its 10 years, right?
      I haven't measured before and after water flows so I can't provide a quantitative answer. The two holes are a bit smaller so the flow must be reduced to some extent. However, the flow from tubs has been more than sufficient so the reduction can't be significant.

      Sorry my post wasn't clear. (I just went back and edited that post. Thanks.) I don't increase the manufacturer's warranty, and don't represent that I increase the warranty. (Although that's certainly an idea. ) I just take a couple of minutes to educate the customer about the benefit of the anode, and the light goes on for them. They get a water heater that should last years longer for a few dollars more. I believe it's a good value.
      Time flies like an arrow.

      Fruit flies like a banana.

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      • #4
        Re: Adding value to water heater install.

        I thought the whole idea was a longer warranty, for more money. Heaters with a longer warranty, cost more.

        Comment


        • #5
          Re: Adding value to water heater install.

          Originally posted by NorthernIllinoisPlumber View Post
          I thought the whole idea was a longer warranty, for more money. Heaters with a longer warranty, cost more.

          The idea, for me at least, is providing greater value for the money my customer spends. What if you could get a water heater that has a very good chance of lasting as long as the warranty period of a water heater costing hundreds of dollars more than a standard 6 year water heater for just a few dollars more?

          Happy and satisfied customers are very important to this plumber.
          Time flies like an arrow.

          Fruit flies like a banana.

          Comment


          • #6
            Re: Adding value to water heater install.

            I got you there. It is an easier sell with a longer warranty, compared to the regular six year. I could see a customer spending an extra $150 for a longer warranty. I looked up the Rheem, the kit ups it to 10 years...worth it to me.

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            • #7
              Re: Adding value to water heater install.

              Ought to just make them like they used to and let them keep the extra anode.


              J.C.

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              • #8
                Re: Adding value to water heater install.

                I'm happy to sell a longer warranty water heater if the customer wants it, and some do. Most have been content to save the money and know the heater is going to last longer than it otherwise would have.
                Time flies like an arrow.

                Fruit flies like a banana.

                Comment


                • #9
                  Re: Adding value to water heater install.

                  Rheem has been doing this for quite awhile.

                  Customers think that a 10 year warranty on a water heater, means it's better built, when actually all they are doing is adding another anode rod.

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                  • #10
                    Re: Adding value to water heater install.

                    remember that the longer warranty is for the replacement tank. the price is determined when the heater was originally purchased. so basically the heater cost $450 when originally purchased new. 9 years down the road it fails and the new heater is now $850. the customer is out $400. plus tax and the labor to install it. not to mention the extra $150 at the front end for the extended warranty.

                    i doubt i've sold 2 heaters with an extended warranty. it's a numbers game and it always favors the house.

                    if i was smart i would provide my own in house warranty and include labor. get more money upfront and take the educated risk

                    the factory warranty sucks. my warranty would just suck less

                    rick.
                    phoebe it is

                    Comment


                    • #11
                      Re: Adding value to water heater install.

                      Uh, correct me if I'm wrong, but aren't the warranties are Prorated too?

                      That is to say if you purchase a heater with a 10 year warranty and it fails 9 years from purchase, you only get 10% back.

                      BTW, I'm pretty sure that the BW heaters come with the extra anode rod on the hot side and the dip stick on the cold side

                      Ever try to take the dielectric nipples out of a BW heater? Both have rods attached.

                      -Chris

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                      • #12
                        Re: Adding value to water heater install.

                        I understand warranties are prorated.

                        I did not know BW water heaters had dual anodes. That's interesting and useful info. Thank you.
                        Time flies like an arrow.

                        Fruit flies like a banana.

                        Comment


                        • #13
                          Re: Adding value to water heater install.

                          Plumber Rick Be careful about adding an extended warranty for a price. Many States would see you as having a second business as an insurance company. Mike

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