Heat Interface Unit - Pricing?

Heat networks and interface unit pricing structure is a very fascinating topic. Fascinating because the price of a typical HIU can range from ￡850 to ￡1500 and we often get asked why. So i thought i would apply a bit of real world logic. Some may agree, some may not. But if nothing else, i hope this article makes you think about a few topics within the heat network market, mainly the heat interface units.

Lets start with asking a question "Why can i buy a combination boiler for ￡700 but a HIU i'm being quoted ￡1099". Now some may laugh at this but lets delve into the question a little deeper. Actual component wise not much. In fact some combination boilers will have more working components than most HIU's so why is the HIU typically more expensive? A few reasons: Some brands prefer to keep pricing high, higher price = better profits? Good business model some would say. Cloak & dagger selling techniques? Some sales forces try and bamboozle clients maybe? In short the pricing structure should be identical from a combination boiler to a heat interface unit. Mechanically they are more similar then people would expect.

I have seen and heard quotes such as 'buy cheap buy twice'. This actually makes me smile a little, as its such a 1890's statement. If i refer to the YGHP 40/10 indirect heat interface unit, this unit comes with a 5 year warranty, no fancy gimmicks* but works in the real world. All for approx ￡850.00. (If you are paying more, may i suggest you speak with YGHP).

*Gimmicks, another great selling tactic by other brands? Smart features that the user will probably never be aware of or use? Features that sound great on paper, but will they be used? Some will say yes, others no. Me personally, if i wanted a piece of equipment that would make a cup of coffee in the morning i would buy a coffee machine, not a HIU that i have been told will offer the world. I don't doubt smart features 'can' be useful but when the client or user just wants something that works and works well, why complicate?

Current UK testing, this is a hot topic however i would agree that the regulations and regimes are great for the market space. They allow people to see a generic set of tests and results. What i believe is that more regulations should be brought into effect across an entire range of interface units from indirect, direct and so on. At the moment in the UK most brands are UK regime tested, this is a great starting point but more is needed. More real world findings are needed. I'm sure we have all been in a situation that on paper sounded good, come to use said product in the real world to find that the product may not be performing as initially expected. More real world testing and solutions are required.

So in short, i expect pricing to decrease over time. More brands entering the market, more awareness of the workings of interface units in general. Buying cheaper doesn't mean you are buying a cheaper inferior product. In the case of the YGHP units it simply means you are buying a real world, working product without the inflated profits.

I hope this article has been useful in some sort of way, to the clients why not explore the options. To the cloak and dagger sales teams: continue selling your coffee machines. YGHP will continue to sell a performing interface unit.

Aaron Lee (Head Of Sales, YGHP).