Q&A with Heat Storm CEO Bruce Amberson

by L. J. Aimes

Heat Storm contributor L.J. Aimes caught up with Bruce Amberson, the CEO of EnergyWise Solutions, manufacturer of Heat Storm Infrared Heaters. In a recent interview, she had a chance to ask Bruce a few questions about the Heat Storm 2011 program and the infrared industry.

Q: What makes your company and offerings different or unique from your competitors?

A: Our company vision is to give independent retailers the competitive edge over Big Box stores. All of our decisions and efforts are guided by that core principle.

In addition, we are the only company with indoor and outdoor infrared heating lines. Infrared is our business. So, we are the infrared heating solution for independent retailers. Ultimately, we know that independent retailers will always provide the best customer service.

Q: Will the average price of indoor portable infrared heaters stabilize anytime soon?

A: I think we’ll see a stable price by winter of 2012. Every product has a floor and we’re there for quality infrared heat. However, the quality from product to product remains the primary driver in the pricing disparity. In this economy it is hard for consumers to differentiate between a solid brand striving for quality and a company that simply ensures its margins are high enough to factor in high defective rates.

The days of those who are in this industry for a quick buck are ending, but unfortunately for now they are still out there. Some of the serious brands are still working through their warranty and customer service models, which has negatively affected consumer confidence in this category overall. But, infrared heating is moving toward being a mature retail category, so we are nearing a stable average market price.

Today most retailers view infrared heating as a permanent heating sub-category within electric heating. I couldn’t have said that even two seasons ago. The fact of the matter is that portable infrared heaters provide a substantially better solution for zone heating. So it’s not going away.

Product quality and customer service are now becoming increasingly critical for long-term success. This is very encouraging for Heat Storm.

Q: Outdoor Infrared Heating is big in Europe; do you really believe that it will catch on here in North America to the same degree?

A: Absolutely. When you consider the long-term trend of the cost of fossil fuels electricity will become increasingly inexpensive. In the end, what Europeans found attractive about outdoor infrared heat is that it is significantly cheaper than propane or butane. Here in North America it is five times cheaper to use electric infrared in garages, shops, patios and other outdoor areas when comparing to portable propane. This is true even though propane, butane, and natural gas are cheaper here in the US than in Europe. Eventually a tipping point will be reached and Americans will adapt. In the end they’ll discover a better solution at a better price.

Q: You sell over the Internet; how does this fit into your company’s vision of catering to the independent retailer?

A: That is a great question. This is a task I reserve to myself. The models that we sell over the Internet are in an entirely different price category and have other significant feature differences. As I said earlier, we first design our program for our independent Retail Partners, then we design a non threatening program that still provides value to sell over the Internet. Our retail partners don’t have to worry about competing under unfair Internet or Infomercial practices common to infrared because they are our first priority. In contrast what our competitors do is design their programs around Big Box, Direct Response, and Internet. Then they go after the independents as more of an afterthought.

Q: What have you learned from your experience as the founder and CEO of Heat Storm?

A: Right now there is a real sense among small to mid-size companies to get back to the basics. When you have long periods of abundance there is a tendency toward fiscal laziness. So, the economic changes have forced even small businesses to follow more rigorous accounting principles than in the past that typically only large corporations followed.

Of course, there has to be discipline in the behind-the-scenes operations, but companies also have to be more connected to what their customers are craving. Less assumption, more experimenting, asking questions rather than evangelizing, and then looking at the facts to determine future actions.

Q: Which thought leaders do you follow, and whose opinions and ideas do you value most–and why?

A: I would have to say that Jim Collins is most in line with my style of business. His conclusions are the result of extensive research by his team who systematically capture a lot of data points. Their research conclusions are often counter-intuitive, but always backed with data that proves out in the end. Also Steve Wilkinghoff who wrote “Found Money” has a great no nonsense outlook on corporate accounting that is badly needed in the US.

Also, due to my background in IT, I still pay close attention to the innovation taking place there, not only technologically but culturally. Information Technology continues to prove that those who anticipate what consumers want rather than following the pack enjoy the greatest rewards.