Replacement Market Is King
The old line about the shaving companies selling the razor unit for $1.00 only to get you to buy the replacement blades over and over again is as true today as it was 80 years ago when that phrase was started. The paper companies that make toilet paper are not really interested in making toilets and urinals as those are products purchased once and replaced perhaps one time every 15 or 20 years. Toilet paper on the other hand is used everyday by almost everyone, everywhere. Oil companies are not interested in getting into the automobile business because they can make much more money providing you with the juice that makes your new toy move. Without their gasoline your car might as well be a hunk of junk.
Pure Air Systems has been manufacturing and marketing certified HEPA and Carbon based fan powered, commercial air filtration systems since 1985. The units use high end materials, motors, fans and electrical components. These units are designed to run for upwards of 20 years with possible replacement of the motor during that time frame.
Each unit comes with three filters. A polyester ring-panel prefilter, carbon media filter and true, scanned 99.99% HEPA filter. The prefilters are changed once every three months or four times per year, the carbon media once every 6 months or sooner depending upon the application and the HEPA filter is change once every 2 to 3 years again depending upon the type of application. These filters are all commercial grade filters and not available on the open market so users of the systems have to purchase the replacement filters directly from PAS.
Today, with over 20,000 units in the field, Pure Air Systems generates enough cash flow from the replacement business alone to pay for their daily operating costs before they ship out any new systems. This “annuity” process should be the ultimate goal of anyone who wants to build a product or develop a process as it assures the company of having a cash flow stream when there are few orders for the main systems or equipment. This concept was one reason Pure Air Systems was able to weather the storm during the recession.
The new 3D Printing industry may be in its infancy in many ways but the companies that will offer the replacement filaments and materials will be the winners in this technology. And make no mistake, 3D printing will be a major player in the market in the next two years.
When looking at developing a business model in the area of manufacturing it is important to keep the parts replacement issue as a major part of your concept. Without it there is a strong possibility that you will have some major cash flow challenges which could bring your company to an end sooner than anticipated.
For more information on the complete line of HEPA and Carbon media filters please go to our website at: https://www.pureairsystems.com or follow us on Twitter @pureairsystems or call us at anytime on our toll-free number: 800-869-8025.