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Electric underfloor heating is a
fast growing market
Electric underfloor heating offers merchants excellent opportunities to benefit from a relatively new and growing heating market niche which has not yet seen the products commoditised and profit margins squeezed. While this approach has so far been perceived as upmarket, it is in fact competitive at the midmarket level and therefore has tremendous potential.
Authoritative market-share percentages are hard to come by, but we would hazard a few guesses, such as that underfloor heating, as a whole, could rise from about 10% of the total market now to 15 or even 20% of it within the next three to five years. Electric underfloor heating, now some 40% of the underfloor niche, could increase to perhaps 60% in three to five years.
Since electric underfloor heating was only around 5% of the underfloor niche five years ago, its growth in popularity is clearly being demonstrated. We also predict that the current market splits to approximately 10% domestic and 90% non-domestic and that new build, currently about 55% of the market compared with 45% refurbishment, will take some 65% of the underfloor niche within five years.
For merchants, there is not only compatibility of electric underfloor heating with most types of flooring (although it is usually worth checking with flooring material manufacturers on this), there is also the opportunity to sell the whole ‘sandwich’ of flooring materials, including substrates, insulation, underfloor heating and floorcovering.
In general, merchants can tailor their stockholding to their own and their customers’ needs. In some areas there may be greater focus on whole buildings; in others conservatories, extensions or outdoor applications. A supplier worth partnering will not oblige stockists to hold all its products, or at least those it specifies, but will fit in with merchants' own local requirements.
Electric underfloor products can be obtained, like many others, either from a supplier or via a distributor, with the latter route costing a bit more but normally affording quicker delivery. Profit margins, depending on volume, can be as high as 25 or even 50%.
Suppliers worth their salt are not in the business of trying to fill merchants' shelves. It is understood that stockholding is dynamically geared to selling, so a producer-partner should be advising outlets on what is best for them to hold, or order in, for their customers, which may include self-builders and doit- yourself users as well as tradespeople.
Training for merchants and their customers is essential and they can be a major influence on choices made either by their customers or end-users. As the latter become more sophisticated, they are focusing more on what they prefer, less on the old arguments about running costs. Underfloor heating is trendy, the electric version needs no boiler, and radiators are not required, but the system is still somewhat novel and does need selling by knowledgeable staff.
For installers and consumers who still focus on costs, it can be argued that electric underfloor heating is competitive, not only with other forms of electric heating but also with any type of heating. There is no maintenance, close control which can involve off-peak tariffs, and 100% efficiency at the point of use (power station economics need not concern us here).
Among many advantages of underfloor electric heating, some of which have been stated before, are: quiet operation; cleanliness without any problems of flueing, carbon monoxide emissions or sooting; easier positioning than with boilers, storage radiators, panels or fires; and preparedness for any change to renewables, nuclear or other forms of power generation.
While faults rarely occur with electric underfloor heating, merchants can bear in mind that a reputable manufacturer will often help with remedial action (or with initial installation if required). Other points to think about are a supplier's brand image, its reputation for quality products and good service, whether or not it has accumulated much experience, and whether or not it can boast its own research, development and product manufacturing facilities.
