As plumbing professionals, it is our duty to recommend products to customers that can provide the best value and performance. One such product that has gained popularity over the years is the tankless water heater.

Unlike traditional tank-based water heaters, tankless systems provide hot water on demand without the need for a storage tank. The benefits of tankless water heaters are numerous, including energy efficiency, cost savings, and longer life span. However, not all customers are aware of these benefits and may need some guidance in choosing the right system.

There are many plumbers, who don’t like the idea of tankless water heaters for a variety of reasons, such as price, availability of repair parts, cost of repair parts and extensive re-piping. While it's true that tankless water heaters have had their issues, times have changed and in my opinion there are a handful of manufacturers who have solved these problems and made tankless water heaters a great investment.

Here are some tips on upselling tankless water heaters to a customer who may be on the fence about switching over from a tank unit.

Identify the customer's needs

Before suggesting a tankless water heater, it is critical to understand the customer's needs. Find out the size of their household and daily hot water usage. This information will help determine the appropriate size of tankless water heater required. You don’t want to just slam in a 199,000 BTU unit without sizing their system.

Additionally, find out the customer's budget as tankless water heaters are more expensive than traditional water heaters. But remember, these systems are long-lasting and could save the homeowner money in the long run. 

Highlight the energy efficiency

One of the main benefits of tankless water heaters is their energy efficiency. These systems only heat water as it is required, meaning they do not need to keep a large tank of water always heated. This results in significant energy savings as the system uses less energy to operate.

A few years ago, I was on the tank team. I really wasn’t sold on tankless. I saw the yellow “Cost to Operate Annually” tag that read something like “$239 per year” and wondered how much this could possibly save people? Say it saved 50%. You’re talking about saving a homeowner $119.50 per year by spending $4,000 for a tankless install? I wasn’t necessarily wrong at the time, but these days utility costs are out of control, volatile and unpredictable.

Mention the space-saving design

Another benefit of tankless water heaters is their compact design. Tankless systems are much smaller than traditional water heaters, taking up less space in the home. This is particularly useful for customers with limited space or those who want to free up some space in their utility room. Since tankless systems do not require storage tanks, this means less clutter and more space for other items.

For many homes, this benefit is laughable. What are you going to do with an extra foot of space in the basement or crawl space? But I’m always surprised at how many people see this as a benefit. Think about your typical unfinished basement that has a boiler and a tank-type water heater. You could combine them into a combination unit that takes combustion air from the outdoors, open the room up, finish it and turn it into a game room.

Emphasize the longer life span

Tankless water heaters have a longer life span than traditional water heaters. While traditional water heaters typically last 8 to 12 years, tankless systems can last up to 20 years or more with regular maintenance. This means less frequent replacements and less money spent on maintenance and repairs over time. For homeowners looking for a long-term solution, tankless water heaters are an ideal option.

Address concerns about upfront cost

One of the main concerns customers may have when considering a tankless water heater is the upfront cost. Tankless systems are typically more expensive than traditional water heaters, but they offer numerous long-term benefits that can offset the initial cost. It's important to highlight these benefits to help customers understand the true value of investing in a tankless water heater.

Here’s a complication with the “break-even math.” The homeowner is looking at the cost of a tank type and a tankless. But the true comparison would be comparing a tank-to-tank replacement with a tankless-to-tankless replacement. The first time you switch a house from tank to tankless, you have rough-in costs that don’t need to be addressed a second time.

Explain the maintenance requirements

It's important to mention that all water heaters require regular maintenance to ensure they perform efficiently and safely. However, tankless water heaters require a little more maintenance than traditional water heaters. Customers should be made aware of the maintenance requirements, which generally include annual flushing and descaling of the system to prevent build-up of minerals and debris. This can be done through your professional service or by the homeowner themselves with the proper instructions. This can generate repeat business for you.

With the right approach and communication, we can help more homeowners enjoy the benefits of this innovative technology while growing our businesses in the process.

About the Author

Anthony Pacilla is a registered master plumber for McVehil Plumbing in Washington, Pennsylvania. He has over two decades of experience in the plumbing and HVAC trades, and has a bachelor’s in business and economics from Thiel College.