Five Reasons why Sales of Electronic Water Level Controllers are Declining in the Cooling Tower Market

Electronic Water Level Controllers in the Cooling Tower industry have experienced a continuous sales decline almost since they were originally introduced nearly twenty years ago. Everyone seems to have been disappointed by this product category for one reason or another, including the Original Equipment Manufacturers, specifying engineers, cooling tower factory dealers, field service technicians and facility maintenance staff.

So what happened? Well, I can tell you that it’s not just one thing, but a host of things which all stem from a low barrier to entry. What’s a low barrier to entry? It means that anyone with a little bit of know-how can put together a product that will keep a cooling tower basin full. However, once the trust between the makers of these poorly designed devices and their customers has been lost or destroyed due to poor product performance, it’s hard to gain back that trust. And, the bad reputation created by these inadequate products unfortunately paints a negative perception for all products in the category regardless of design or manufacturer.

Here are the five reasons why I believe the sales of electronic water level controllers have been declining:

Reason #1 – Product Design: The most important aspect for a product like this is how easily it can be disassembled in the field for repair or service. The relay that operates the solenoid valve is the component that fails most often in these kinds of products. So ask yourself the next time you install or replace an electronic water level controller, “does this controller allow access to the relays that will fail over time and, if so, can those parts be easily replaced?”

The second most important design feature that you will not know, unless you ask, is how the sensing circuit works. Ideally the sensing circuit does not exceed one volt or one ampere. Also, some sound sensing systems become distorted and inaccurate by the reflections created by water. I wrote a paper about the differences between sensing methods on my website at www.waterlinecontrols.com under the White Papers section.

Reason #2 – Product Lifecycle: WOW! Don’t you think a product as important as this is to the Cooling Tower should last as long as the Cooling Tower? I absolutely do! You see, it costs a lot less to replace individual component parts than it does to replace an entire system. So why specify or use a product that, when it fails, you have to replace the entire controller instead of just the little part that failed? Would you replace your car if it only needed new spark plugs? Neither would I.

Reason #3 – Cost: A lot goes into the pricing of any product- market potential, competitive offerings, cost of production, distribution, customer support, overhead and a whole host of other things. Pricing is both a science and an art. In this case, we’re also dealing with a product that has a damaged reputation, so there are a few other factors that go into the equation. I think the right answer in this case is a fair price based on a product that has ALL the attributes necessary for the product to last as long as the cooling tower without the need to replace the entire level control product – EVER!

So, if you choose the right product it will cost less to operate than a mechanical float system over the entire life of the cooling tower. If you replace the mechanical float in a cooling tower every three years, then over 25 years you will have paid a total of $2,400 for eight floats, at a cost of approximately $300 each. Compare this to a total of less than $500 for a simple $20 replaceable component part every ten years plus the cost of rebuilding the valve every five years at a cost of $75 each. The right level control product can cost less than half as much as mechanical floats over the expected life span of the cooling tower.

If you choose the wrong electronic level controller it costs significantly more to use. The wrong products, when it fails, requires the service technician to replace the entire unit at the original price of approximately $800. If you need to do this every seven years (sometimes more often than that) then it is cost prohibitive. This Product should have parts that are replaceable so it can last the life of the tower.

Reason #4 – Serviceability: A field technician or a facility maintenance person should be able to evaluate a system without taking it apart. It should be fast and easy to diagnose and fix a problem in the field without having to replace the entire control box. Testing and diagnostics of a properly designed water level controller should include clearly marked lights that indicate when a function is operating and when it is not, or an onboard test switch to allow the controls to sequence through their functions, or both.

Reason #5 – Market Perception: Whenever I hear someone say, “Oh, that product (whatever it is) doesn’t work”, the first question I ask is, “What do you mean it doesn’t work?” Because the “doesn’t work” could mean any number of different things. In this case, what I have found is that while poorly designed controls perform the basic functions, they do nothing to foster the sustainability of this product segment and, as a result, create a bad reputation in the industry for all water level controls.

The point is that anyone can build a product that performs the basic functions for any application, but not everyone can design a product that is sustainable for the market segment to grow. In the field we see sensors hanging from wires (is that permanent?), solid state controls epoxied so the parts inside cannot be replaced, high voltage wiring inside wet environments, indicator lights that are counter-intuitive and controls without trouble-shooting processes or indicator lights – all technical nightmares that are not sustainable.

What It All Means

Lots of people know how to put parts together to get a water level controller that is functionally correct. Some work better than others. Maybe what I should really say is that the field technician makes the decision on what to use and not use and their experiences with past products influences their future decisions. These technicians “vote with their company pocketbooks” and the sales of these products have continued to decline over the last nineteen years because of poor product performance. What that really means is not that the product does not function as described, but rather that when it fails to meet the needs of the technician, it fails to meet the needs of the marketplace and the segment does not grow.

Mechanical floats work, electronic level controls work, but they are not geared for market acceptance. They are merely tolerated. Even when something better comes along it may be hard to accept it because of perceptions based on experiences with other similar products in the past.

We have spent 20 years in the Electronic Water Level Controls business in other markets and 15 years ago we looked at the Cooling Tower Industry as a market we would eventually enter.

In 2007 we contacted an OEM of cooling towers to determine if they were happy with the Water Level Controls they were currently using. At that time, they were not. So we spent the next two years developing an advanced, next-generation product specifically designed for the cooling tower market. We started our sales efforts in January 2009 and offered the product through the traditional distribution channels.

Unfortunately, we missed something – not in the design, not in the product life span, not in the cost and not in the serviceability, but in the market perception for these kinds of products caused by years of disappointment.

Our Goal

So, our goal now is to not only continue to manufacture, support and improve the most reliable, technically-advanced, user-friendly electronic water level controller ever created for this market, but also to dedicate ourselves to correcting the misperceptions about this product category. This industry is too important to let the disappointments of the past negatively influence the positive future we envision for it.

Why Water Conductivity is Important

Did you know that the conductivity of water changes geographically?  In different parts of the U.S. there is more sedimentary rock (rock formed by erosion) that gets into the public water system and this makes the water more conductive in those areas.

Conductivity and Total Dissolved Solids (TDS) are the same thing measured on different scales.  The latter (TDS) measures physical particles in the water and the former (Conductivity) measures those dissolved particles’ ability to conduct electrical energy.  In the R & D process, Waterline Controls realized (twenty years ago) that our products needed to work in a wide range of conductivity, so we designed our electronic water level controllers for these conditions accordingly.

There is no conductivity in pure water.  Steam is the purest elemental water that can be found.  Distilled water is a close second. Then there is Reverse Osmosis and some argue that certain nano-filtration methods rank up near the top.

When pure water is evaporated off and make-up water is added, it increases the conductivity over time. Examples of this include Cooling Tower Water, Swimming Pool Water, Fountain water – virtually any environment that lends itself to even moderate evaporation rates.  Obviously, the evaporation rates are different in all of these different situations, but the principle is the same, resulting in ever-changing Cycles of Concentration.

Water conductivity is important to us at Waterline Controls because we are using it to complete an electronic circuit.  All Waterline Controls units work in very low conductivity environments.  All of our water level controllers are Electronic, not electric, and that makes a huge difference in the performance of our products at different conductivity levels.

So when you are out there on a project and wondering if Waterline Controls will work in a low TDS situation, the answer is – YES IT WILL.  If you have any concerns about an application, call me directly at (888) 905-1892 and I can let you know before you purchase. We want you to be 100% Satisfied.

Customer Feedback on our Electronic Water Level Controllers

I talk directly to our customers every day. Here are a few of their comments about our products, support and service:

“I don’t know why anyone would use anything else…”

“It functions perfectly…”

“I sure am glad that I have this product line to offer my customers…”

“You have been good to us…”

“Thanks for taking the time to help us understand the product application…”

“You really worked hard to get that order out on time, thanks. Our customer was really happy.”

“You guys have a really nice product for cooling towers. We will be putting them on all our towers…”

Waterline Controls has worked hard to create a product that is designed well and operates correctly.  But, that is only half of the work required to sell good products.  The other half is good quality customer service.  When you call Waterline Controls with your questions, you don’t get the usual runaround, bad guesses or stupid answers. You talk directly to me – the guy who’s been designing and installing these units for more than 20 years.

Who should design water level controls-Customers or Engineers?

Who should make the choice on product selection or design for an Original Equipment Manufacturer that needs a water level control for proper operation of their products – Customers or Engineers?

I remember going to the new car show just after high school when a foreign manufacturer was first introducing a line of cars.  In the area of these new cars were a bunch of people with pens and paper strategically placed around the entire line up of cars.  I asked one of them what he was doing and he said is job was to make observations about what prospective customers looked at and went to first, second, third and so on with both their hands and their eyes.  Also, he was asked to listen and document the comments and ask follow-up questions as necessary.  So all he had to do was document this data as it related to a potential consumer.  Who were these people?

After talking with this person for several minutes I realized he was very capable at design and development of ideas and concepts and was more of an engineer than a marketer.  But I also concluded that this was his only exposure to the customer.  With that being said, I concluded this was a market survey of sorts that did not require asking the person what he or she was looking for but rather an observation process about what was important to that customer, and later, some inductive reasoning as to why it was important to that consumer with the help of other staff members in the marketing department.  What did the majority look at first or touch first and what were the comments, etc…

I believe the surveyors already knew the target demographics they were just trying to understand the consumer in ways no one in that business had ever done before.

I believe this is a universal product development concept that is not always practiced.   For the consumer the design and access to the design is as important as the products functions and features.  Waterline Controls follows this product design concept of what the customer needs even though that consumer really did not know it or understand it at the time.  We continue to make improvements as we learn how our products are applied.

Oh and needless to say, the foreign car manufacturer is still either number one or number two in market share because of the quality of design in the products they make.

What makes a Waterline Controls system different?

What makes a Waterline Controls electronic water leveler system different?

I’ll try to explain this in a non-technical manner.  Simply put: IT IS ALL ABOUT THE MECHANICAL/INDUSTRIAL DESIGN OF THE CONTROL BOX.  All Waterline Controls electronic water level controllers are designed so that the internal parts, if they fail, can be easily, quickly and inexpensively replaced in the field by anyone capable of operating a screwdriver.  You do not need to take the whole unit apart. You do not need to throw away most of the unit and replace it with something new and expensive.  Our electronic water levelers are designed more like an airplane – all the important individual parts can be easily removed and inexpensively replaced as necessary – for virtually an unlimited lifetime of use.

For example, the relays in a Waterline Controls unit are in the high voltage compartment separated from the low voltage parts.  The relays in all filling devices are the only parts that have a defined useful life period.  I don’t know what the useful service life is of other brands, but the useful life for a Waterline Controls relay is somewhere between two million and four million operations.  As I mentioned in another blog, we run extensive lab tests on our products before we ship them to you because we want to ensure the durability, reliability and trouble-free maintenance that our customers have come to expect from  our electronic water levelers. We set up a test bed of 100 relays from the different companies who make relays and ran these tests to find the product that was going to last in this application.  We chose the relay that preformed the best.

For more detailed information on the differences in technology between our electronic water level controllers and other brands, you can read the white paper entitled: “Smart Talk” on our website.

How the Lifetime Limited Warranty from Waterline Controls benefits You

Waterline Controls water leveler

Waterline Controls water leveler

The Lifetime Limited Warranty we offer is a great program that significantly cuts the lifetime operating cost of our electronic water level controllers versus replacing mechanical floats or even the older designs of electrical water level controls when they fail.

How it works:  If, for any reason, the Printed Circuit Board or the Transformer (these are the only two major components) fail in the first year of operation, we will replace those parts for free.  And, if they fail anytime thereafter for the life of the product in its setting, we will replace those items at a cost of only $50.  That’s a huge savings over having to purchase an entire new unit from one of the other brands. Obviously, over time as inflation occurs and costs of materials increase, we will need to increase this amount proportionally.  I decided long ago that we are in the business of selling complete products that last and not the parts business.

So, if you think about the total lifetime cost of operation, Waterline Controls’ units are actually cheaper to operate than a mechanical float system. Typically, a mechanical float system will last about three years on average and then the entire unit must be replaced.

Over the past twenty years, our electronic water level controllers get an average of 15 years of service with less than 1% failure rate in the field.  The reason is that we cycle test all of our units for twenty-four hours before we ship them to you. So, if they are going to fail, they will fail on our factory floor and not in the field.  You have our guarantee on that – backed by our Lifetime Limited Warranty.

Bill Seneff, President
Waterline Controls

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