Why is it important that the Andersen patents have expired?
Two identical looking 3 x 5 windows, both white on the inside and white on the exterior, selling through the same distributor (Home Depot), from the same manufacturer. Why does the wood plastic composite window successfully sell for $242 while the PVC unit goes for $131? The cost to manufacture them varies less than a few dollars.
The Andersen 100 Series Builders window is constructed from wood plastic composite (WPC) framing, is being successfully sold for $242, and is made in a Texas plant which is running at full capacity. As we speak this plant is being expanded to service even more of the U.S. (this window is not yet available NE of Pennsylvania), and workers from other Andersen plants are being relocated to the Texas plant. In 2015, Andersen announced plans to spend $45 million more to expand this capacity (see article attached to the e-mail I sent).
The Andersen PVC window is made with “traditional, hollow-rigid” PVC and has a gross margin typical of PVC windows with a price of $131. Really!- $242 WPC vs. $131 PVC. That is, their WPC unit has 7-800% more margin than their PVC window sold at the same location!
The question
is- why don’t other companies make WPC
windows? One of the main reasons is,
there is no compound present on the market and traditional PVC extruders don’t
want to make this compound.
Major extruders are looking for alternative framing material to supplant rigid PVC. Now they are free to use the same material that Andersen has used for 20 years, has already been certified and advertised to the public, and allows head to head competition (that is, they want to be able to say that the material technology is proven, to allay objections).
I
I can convince you that Andersen has tremendous margin with a simple 20 minute exercise. I can also address the patent issues more fully if necessary.
As a consultant, I have created four WPC designs, the one still being produced at Royal, and three more for prospects who can't find an extruder. Selling compound opens up the market. Give me a call at your convenience, or I will call soon.
Best Regards,
Ross
(865) 388-4490
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