<h2><strong>The Buck Stops Here </strong></h2>
by Dave Sizelove, President &amp; CEO
<h2><b>Girl Scout Cookies</b></h2>
<b></b>I want to start by sharing a recent <a href="http://r20.rs6.net/tn.jsp?f=001OoIrjUJO8rLUUn4nkOh5qqImuAWyAnXOwvxSvM-DlaW0hBmOBt2mgC9LCXxOkm3VZnuSTeQvCzywDXU36vksbLH6iutPTcGrJBFRsFru6AqlrGjvRhjNvHVr8x7V9lXekKlNwWFFGYARD-cPMl9r_wpomXOjjFlQ-DhaN4d5wsrcw-wWmjbnHhgYYbloW6eKbucsH80cM7RYKalUDe9a3ZNoWMqeDcyH090JQaP1v-4rLuKRH-FbWA==&amp;c=2e4eA5c_1k4DZvSk2AW4p40YbnH_TNRgdG7QvNp4LF7moVGtkO-5hw==&amp;ch=zcmN_0r5PutAsrdvh7kdNkp02mOjZLvICaliYaSfRgd0ghwGq4qqfQ==" target="_blank" shape="rect">blog post</a> by internet guru Seth Godin that caught my attention and got me thinking.

<i>I thought I'd share a simple sales approach that in my experience consistently doubles the sales rate for Girl Scouts, at the same time it permits a more natural, humanistic engagement. Most Scouts are taught to memorize a fairly complicated spiel, one that involves introducing themselves, talking in detail about the good work that the Scouts do, and finishing with how the money raised goes for this and for that.</i>

<i>This is difficult work even for a professional, but for a kid talking to an adult, it's frightening and unlikely to lead to a positive experience. The alternative to asking someone if they would like to buy some Girl Scout cookies?</i>

<em><b>"What's your favorite kind of Girl Scout cookie?"</b></em>

<i>In less than ten words, all your memories of previous cookie experiences are summoned up. In one simple question, the power in the transaction shifts, with the Scout going from supplicant to valued supplier. And that's the universal lesson here: A question that avoids a 'no', a question that starts a conversation, a question that opens the door to emotion... those are the questions that build careers and create value.</i>

So what are some questions you can ask that start a conversation and open the door to emotion?

<b><i>"What temperature do you and your family like to swim in?"</i></b>

<b><i></i></b><b><i>"What do you and your family enjoy most about your pool?"</i></b>

<b><i></i></b><b><i>"What would a heated pool mean to you (and your family)?</i></b>

Summoning up an emotion, a positive experience from someone's past is often the key to unlocking a conversation, and ultimately a positive purchasing decision. Why did the customer invest in a pool or buy a home with a pool in the first place; was it the feeling they get when their family and friends are all gathered together? Did they see themselves getting up early in the morning to exercise or come home to a relaxing evening swim?

This reminds me of my favorite Mad Men episode when the lead character, Don Draper is pitching Kodak on a campaign for its revolutionary new "wheel" style projector.

[youtube]http://youtu.be/suRDUFpsHus[/youtube]

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<h2>IAPMO vs. SRCC vs. FSEC</h2>
For over 30 years, there have only been a handful of solar thermal certification agencies in the US. Two survived and the rest, like TIPSE, ARI and the TVA have faded into the memories of Tom Lane, Dave Burrows and myself. FSEC has survived as an extension of the University of Central Florida, mandated by Florida law. The other, SRCC has since had a lock on any national solar thermal certifications for nearly three decades. If you happened to disagree with the rating you received, their response would remind me of an old boss of mine when a decision of his was questioned, "I'm right - you're wrong," he would say, "and I don't want to talk about it anymore."

Well, push came to shove and I had to make a decision that I know would have ramifications, but in the end was the right thing to do. It started in the fall of 2012 when we tested a collector at TÜV Rheinland in Tempe, AZ to the new ISO 9806 Standard. The 9806 standard has been steadily replacing the long-standing ASHRAE 96-80. The main difference between the two is the effect of wind on an unglazed collector. With the 96-80 Standard, as long as the majority of your test data points were at a wind speed of 3mph or under, the results were considered certifiable. If you were unlucky enough to test on a day where the wind speed hovered around 3 mph, your rating could suffer by 5% or more. The new ISO Standard tests with three predetermined wind speeds by controlling the velocity of the air over the surface of the collector with blowers at different test points. Though no test can perfectly predict real world conditions, the ISO Standard gives us a more "apples to apples" comparison than 96-80 ever could.

After the test was completed, we submitted the results to SRCC and the new kid on the performance certification block, IAPMO. We expected good numbers - our intercept efficiency on the Y axis, where the inlet and ambient temperatures are the same, was over 92% compared to our previous curve at 85%. So you can imagine our shock when SRCC issued our new rating matrix and our Category B / 1500 BTU rating dropped by 50%! When I questioned the results - well, my old boss could tell you the answer.

Our next step was to apply to IAPMO for certification with the same test results. Their certification at Category B / 1500 had us coming in 11% higher than our previous SRCC rating. There were accusations of incompetence and business being bought by one certification body issuing a rating higher than another. Validation finally arrived when we submitted the test to FSEC and our performance at their Low Temperature Rating (95 degree inlet) increased by 9% - actually a record for an unglazed collector certified by FSEC. SRCC quickly became the "odd man out." The final straw was when SRCC implemented an annual inspection and associated fee of $2,000. We're already inspected annually by ISO, NSF, IAPMO and semi-annually by CSA. To that end, I had no choice but to voluntarily drop our SRCC listings in favor of IAPMO.

IAPMO is a 162 person strong certification body with offices in 18 states and Washington, DC, and 10 countries including India, Australia, China, Germany, Canada, Mexico, Indonesia, Argentina, the Fiji Islands and the Virgin Islands. SRCC is a handful of staff with one office in Cocoa, Florida.
<h2>Performance Record</h2>
Aquatherm's Ultrasun and Ecosun collectors have set a performance record of 1,100 BTU's per square foot after being certified by the Florida Solar Energy Center based on ISO 9806 testing. FSEC summary sheets can be downloaded <a href="http://r20.rs6.net/tn.jsp?f=001OoIrjUJO8rLUUn4nkOh5qqImuAWyAnXOwvxSvM-DlaW0hBmOBt2mgC9LCXxOkm3VpBeDzaik6sRZvU_zEHH5n8bYGkRzXd-ATnd445vaqPNGM_W4-TYYHvwta1SGNMQvRaPY0XXGI0MAOWoujHVVBS7v5kqURUkmsvGB7Bg1UIBu3YfO1mgUMDIjKsMmZt5ZieoEMcBKHb_0_QY2xZ8qbXfD3jjx0_pqzHN86fIrACKPD1_cf8Yv5Tj5h3LGatEWFrP1ITQtZh8-6KbES1YYlj9vuSWDTUjGhiOkwgvcDQj2_PCoK2TYVCz8SgvhN02q0QgU_aR2MYri790f6aIU7yeEW8e-BE4fQ9HJGybXnfCPanE7O4zJfFRzbCMAUIcg&amp;c=2e4eA5c_1k4DZvSk2AW4p40YbnH_TNRgdG7QvNp4LF7moVGtkO-5hw==&amp;ch=zcmN_0r5PutAsrdvh7kdNkp02mOjZLvICaliYaSfRgd0ghwGq4qqfQ==" target="_blank" shape="rect">here</a>. In a related story which involves the Florida Solar Energy Center, legislation has been introduced in Florida (SB1044 Simpson) that would eliminate the requirement for solar products sold in Florida to be certified by FSEC. The exact language of the bill reads as follows:

(b) The center may <span style="text-decoration: line-through;">shall</span> establish criteria for testing the performance of solar energy systems and may <span style="text-decoration: line-through;">shall</span> maintain the necessary capability for testing or evaluating the performance of solar energy systems.<b> </b>

I'll be very interested in our industry's position on this. It would be the end of an era if FSEC certification joins the likes of TIPSE, ARI and the TVA.<b> </b>
<h2>Product Quality</h2>
It used to be in most industries that a manufacturers experience and history was a great measure of product quality. But the pressure to increase profit margins has led companies, new and old alike, to increase efficiencies. In turn, this has led some to claim that manufacturers are cutting corners when it comes to quality.

We heard that at a recent competitor's annual dealer meeting it was announced that the manufacturer was switching their collector material from polypropylene to polyethylene. If polyethylene (PE) is such a good idea today, then why wasn't it years ago? Maybe because today, PE is generally less expensive then polypropylene (PP). Polypropylene has been the material of choice for our industry for 40 years because of its inherent resistance to chemicals, heat and UV light. The battery case in your car, as well as other plastic components under the hood are made from PP, telephone wires are coated with PP and plastic roofing materials are made from PP, not PE - all for good reason.

Other than price, PE has an initial advantage that it is more flexible, or forgiving, but that is soon lost. The melting temperature of PE is lower than PP, which means the closer that a stagnating collector gets to the melting temperature, the more quickly the material degrades.

When determining product quality in today's market, it's important to let your customers know to what standards a manufacturer is being held accountable. At a minimum, products should be IAPMO or SRCC certified, NSF-50 and CSA listed, as well as manufactured at an ISO 9001:2008 registered facility.<b> </b>
<h2>Two new brochures...</h2>
Two sleek new six-page brochures are now available for the Ecosun (pt. no. 19727) and Solar Industries ( pt. no. 19735) product lines, which now incorporate elements of the Specification / Data Sheets. In a further effort to consolidate brochures, leaving less for you to inventory, we've decided to discontinue the "Evolution of Solar Collector Design" brochure for Ecosun and "The Original Innovator" for Solar Industries. Instead, we've integrated these pieces into their respective six-page brochures. The Solar Industries brochure also includes a timeline spanning nearly 40 years of the brand's history, and we've already talked about a variation on that theme with the next Ecosun revision - a sort of "innovations through the generations," if you will. Can you believe Ecosun has gone through five generations of product enhancements since 1993?

Click on the thumbnails below to view the brochures in their entirety as PDFs.

<a href="http://www.aquathermindustries.com/wp-content/uploads/2014/03/Ecosun-6pg-19727-Rev-9-13-low-res.pdf"><img class="alignnone" alt="" src="http://www.aquathermindustries.com/wp-content/uploads/2014/03/ES-19727.png" width="191" height="249" /></a> <a href="http://www.aquathermindustries.com/wp-content/uploads/2014/03/SI-6pg-19735-Rev-3-14-low-res.pdf"><img class="alignnone" alt="" src="http://www.aquathermindustries.com/wp-content/uploads/2014/03/SI-19735.png" width="193" height="252" /></a>
<h2>Three new products...</h2>
The new <strong>Strap Clamp</strong> has begun shipping. This design is even stronger than the previous one and, because of the redesign, is cost-effectively made right here in New Jersey. The pt. no and pricing remain the same.
<p style="text-align: center;"><img class="aligncenter" alt="" src="http://www.aquathermindustries.com/wp-content/uploads/2014/05/strap-clamp.png" width="406" height="290" /></p>
It's always been important to us to have as many of our components and raw materials made as close to home as possible - about 95% are made within 1,000 miles of Aquatherm. Our five extruders were made in Rhode Island and our three molders in Ontario, Canada; our resin comes from either Washington, Pennsylvania or Jackson, Tennessee; our hoses from Ohio; and our stainless steel stampings and strapping and all our tooling is made here in New Jersey. Not only does it reduce our carbon footprint and incoming shipping costs, but we also believe the old axiom, <em>if our neighbors don't have a job, pretty soon we won't have jobs either</em>.

<strong><img class="alignright" alt="" src="http://www.aquathermindustries.com/wp-content/uploads/2014/03/VRV-e1395928874208.jpg" width="270" height="203" />A</strong> <strong>Heavy-duty Vacuum Relief Valve</strong> is now available for installations where the collectors are mounted in an unusually high location or the flow of the system is borderline low due to the use of a variable-speed or two-speed pump. The pt. nos. are 10127-1 for 1 ½" and -2 for 2", and will be differentiated from the regular using a white "HD" sticker next to the serial number label. List Prices are $25.00 and $30.00 each respectively.

<strong><img class="alignright" alt="" src="http://www.aquathermindustries.com/wp-content/uploads/2014/03/INLET-OFFSET-e1395928945735.jpg" width="315" height="237" />Inlet Header Offset Spacers</strong> can be used at the inlet header when changing collector lengths in row of collectors. These Spacers are perfectly sized to match the distance that two offsetting 90's require at the top header. You no longer have to use two pipe adapters glued to two PVC couplings and a short piece of pipe. The pt. nos. are 30117-5 for 1 ½" and 30159-5 for 2". List Prices are $12.00 and $18.00 respectively.
<h2>And more to come!</h2>
The innovative, patented <strong>Flashing Bases and Covers</strong> will be available in May. The pt. no. for the set of three (one Outlet Header Bracket Flashing Base and two Strap Bracket Flashing Bases) will be 30341 and the List Price is $4.50 per set. The Flashing Bases will come standard with all stainless steel mounting kits. Flashing Bases will also be available individually and in bulk as pt. nos. 30341-1 for the Outlet Header Base and 30341-2 for the Strap Mounting Base, at a List Price of $1.50 each.

The molded version of the <strong>2" System Connector Hose</strong> will be available in mid to late May. The part no. will be 60691-2 and the List Price will increase from $13.50 to $15.00.<b style="font-size: 16px;"> </b>
<h2>New Quick-Start Installation Manual</h2>
Our new online Product Guide and Installation Manual, available in PDF or in iBooks has quickly grown from a simple installation manual to become more of a repository of knowledge with over 100 pages. To that end, and to address requests from some of you, we've paired down a version to the basics that can be used for permit applications or other uses when you don't want to print a tree. They appear on a back page of the Aquatherm web site at <a href="http://r20.rs6.net/tn.jsp?f=001OoIrjUJO8rLUUn4nkOh5qqImuAWyAnXOwvxSvM-DlaW0hBmOBt2mgC9LCXxOkm3V4I5h5E2toMZEjrzaWo69jOSQe4bO26fyORiS0t5BVdEwK7Bhm_YFH_k34cvIFOkaYoRqmyX7YvK_5eTrqrzGskBKfpGzRX_5JowOR29rdCUCbyQZ2bgLKTgDxpvna0d6&amp;c=2e4eA5c_1k4DZvSk2AW4p40YbnH_TNRgdG7QvNp4LF7moVGtkO-5hw==&amp;ch=zcmN_0r5PutAsrdvh7kdNkp02mOjZLvICaliYaSfRgd0ghwGq4qqfQ==" target="_blank" shape="rect">www.aquathermindistries.com/manual</a>. If you have some time on your hands, save the extended version to your iPad or Kindle device and read away - as always, we welcome your input, thoughts and suggestions.
<h2>Green labels / Serial no. label change</h2>
By now you may have noticed the green QC label on each collector is sporting a new look with a large number "5" recycling symbol, which indicates polypropylene. You'll also be seeing a change with the serial no. labels - new ones are more translucent than the old. This new style has a much stronger adhesive, but will still leave the word "void" if it is removed from the collector. And just a reminder, the header with the collector serial no. should always be used as the top (outlet) header and face down. By locating the labels here, it minimizes the possibility of damage to the labels from expansion and contraction plus gives us starting point if the collector is ever turned in under warranty.
<h2>Natural gas Prices / resin prices have been stable</h2>
<span style="color: #000000;">W</span>ith thanks, or no thanks to fracking, natural gas prices have remained fairly stable recently. But that's been a double-edged sword for the solar pool heating industry and the entire solar thermal industry for that matter. Relatively low and stable natural gas prices have also stabilized the price of polypropylene, which in today's raw material market is being made exclusively using natural gas. The good / bad news is that our glut of natural gas, estimated to last a century at current consumption levels, is being targeted for export to Europe and Asia. Gas, now at $4.33 per million BTU's was just $2 per million in 2012 and is expected to rise to $6 by 2017, though still less than the $9 per million BTU's we saw in 2008.<b> </b>
<h2>2014 Summer Sales Retreat</h2>
The 2013 Summer Sales Retreat in Costa Rica definitely went down as one of the best ever. Thanks to all who attended that made it a success. In 2014, we're returning to the high seas with a cruise from Port Liberty in New Jersey to the island of Bermuda aboard Royal Caribbean's Explorer of the Seas on July 26th. As always, we've made sure to book a few extra staterooms at our group rate just in case you'd like to join in on the fun and camaraderie. If you're interested, please feel free to call Pat or myself.