Selling intelligent hot water to Australia

Intelligent measurement technology developed by Senztek has seen its Australian sales of hot water controllers grow 60 percent in the first seven months of 2009. 

The products at the heart of the growth include a range of solar system controller and a smart hot water cylinder controller that can be fitted – or retrofitted – to any standard electric or gas hot water cylinder. 

Efficiencies are maximised through the application of innovative control algorithms that match household demand for hot water with the energy required to ensure the hot water is there when it is required.  

Senztek now holds around 20 percent of the fast-growing Australian niche market and, with help from NZTE, is eyeing up potential in the UK. Exports now make up nearly 70 percent of the privately-owned company’s turnover. 

But, according to Senztek CEO Brian Knolles, it’s not just the siren song of cost savings but also the thriving ‘green factor’ that is attractive.

“Of course we can help a home or business attack the cost of hot water heating that makes up around 30 percent of the average domestic electricity bill, and we can operate with a number of energy sources. But all the trends are showing people are making choices based on how environmentally friendly they can be, and how they can reduce their carbon footprint in every aspect of their lives. 

“Clearly, a combination of solar energy and smart technology to maximise its benefits, is the way the world is going.”

Although the market focus is primarily domestic, Senztek’s intelligent controllers are also playing an energy and cost saving role in hotels, motels and fast food outlets in Australia and New Zealand.

Senztek arose, phoenix-like, from a 16 year old industrial instrument controls company. The new owners kept the original business ticking over, but added marketing and a sound dose of commercial reality to take the business into the water heating and controls where they predicted growth potential.

The change was significant, taking the company from a manufacturing and introspective mindset to a customer-focused one, and created a considerable change for the 20+ employees.

A deliberate vision for the b2b model saw the company determined to stick with a distributor strategy. 

They initially signed with one of Australia’s largest distributors, followed recently by the third largest – both of whom have contributed to the 60 percent growth this year. 

Breaking into the Australian market was a no brainer, according to Knolles.  With its trans-Tasman ease of doing business and energy initiatives supported by the government-led spend on smarter energy solutions the market was open to all comers.

“Australia is our major market because of their emphasis on solar energy and a growing desire to move away from coal-fired power stations. 

"We found tradeshows useful and desktop research helpful, but the one thing that really clicked it in for us was getting on the ground locally and networking.”

Senztek is set on establishing a presence in the UK and has been working hard at making inroads into that market. A clear focus on what will work and what won’t, in terms of market potential, is critical says Knolles. The company’s technology is most attractive where energy is costly and alternatives are few.

But the application of its New Zealand design and ingenuity and a contribution to energy savings has the company on track to its goal of doubling revenues to become a $10m company within two to three years.