The View From Here
by Ric Jackson
March 21st, 2016

Window World Exec Responds to 25C Tax Credit Renewal

No one was more surprised than I was when Congress passed the PATH Act, which reinstated the 25C tax credit for 2015 and 2016. The unlikely news inspired me to post a response titled ‘25C Could Spark Renewed Interest in Energy Star® Products’ on Quanex’s In Focus blog.

My sentiment was that it is unlikely 25C will have any significant impact on door and window sales at the current levels. However, while the tax credits alone may not be enough to influence buying decisions, I do feel strongly that it very well could spark renewed interested in Energy Star®-rated products.

So I asked the question: In light of the new tax credits, do you plan to more aggressively market your Energy Star-rated products?

I interviewed Steve Newton, director of product development for Window World, to get his take.

Q: Do you leverage federal tax credits in your marketing efforts?

A: Since the government introduced the 25C tax credit program, Window World has used the program to promote extra savings for our customers. We identify what high-energy performance windows can do for the home, including sound reduction and absorption, and share with the customer. We highlight how Window World’s products resist solar heat gain, keeping homes cooler in the summer months, and how they offer higher insulating factors, which keep homes warmer during the winter months.

Q: What is your take on the recent 25C tax credit extension?

A: The energy tax credit will always add value and interest from the consumer; however, since instituting a $200 max for window replacement, the offer has created less urgency. When first introduced, the consumer had a potential $1,500 max tax credit, so it impacted the offer significantly. Window World looks forward to seeing how the extension will affect sales at a local level.

Q: What percentage of Window World’s sales are Energy Star -rated products?

A: Energy Star-rated windows account for over 70 percent of Window World’s national sales. The percentage is substantially higher for states that have stricter performance guidelines.

Q: In light of the tax credit extension, do you plan to more aggressively market your Energy Star-rated products?

A: Increased fuel and electrical prices over the last five years have prompted consumers to search for more energy-saving solutions for their homes. Knowing the value that Energy Star-rated products provide for customers, Window World stores nationwide promote our energy-efficient products heavily through our marketing messages.

Q: What do you want customers to know about Window World’s product and service offerings?

A: We know that not everyone knows about what differentiates efficient products, so we pride ourselves on educating the consumer on features and benefits of our exterior solutions, and how they will impact their way of living.

When choosing doors and windows for a home, we want homeowners to consider what will bring the best long-term results. Owners should look at the reputation and strength of the window and door service dealer, including longevity, sales, customer service history, ethics and ability to support a lifetime warranty. Additionally, consumers should review the company’s product quality and accreditations, such as the Good Housekeeping Seal, BBB and other credible sources.

Big thanks to Steve Newton from Window Worldor his View. What’s yours? How important will Energy Star be in your future marketing efforts?

Email me directly at Eric.Jackson@Quanex.com.

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