Good practice

German window-maker applies functional sales model

German window-maker applies functional sales model
© Ivan Kruk, image #171242238, 2017, source: Fotolia.com
Resources:
Materials
Sector:
Manufacturing of machinery and equipment
Payback time:
2 - 5 Year(s)
Resource savings: Energy:
Company energy savings from not using virgin material are likely to be neutralised by energy used in window re-manufacturing; household savings on window upgrades from better insulation and energy efficiency performance (up to 30-60 % energy savings in building heating and cooling, or € 70-200 per year)
Resource savings: Raw material:
Used materials (metal frames, glass) are taken back and re-used in new products, saving the manufacturer € 50-100 per square metre of window
Return on investment:
20 - 50%
Co2 emission reduction:
CO2 emission reduction is linked to energy savings, which are negligible in (re)manufacturing
Size of company:
Medium (less than 250)
Advancement in applying resource efficiency measures:
Intermediate

See-through, long-term business relationships

  • Functional business model values long-term relationships over one-off sales
  • Materials in old windows are retrieved and re-used as part of the scheme
  • Customers get the latest in window technology as part of the replacement-upgrade model 

The German window manufacturer Schüco uses a novel 'see-through' business model which offers its goods through a lease-like insurance scheme that benefits both customer and producer. With this functional business model, Schüco can guarantee customers get the best, most optimal window solution now and in the future.

How does the model work? The customer owns the rights to the windows, while Schüco owns the materials. When it is 'economically reasonable' to upgrade or replace the windows, the scheme covers it.

Key benefits

The customer is guaranteed the latest in window technology e.g. embedded solar technology etc., while Schüco can re-use the materials in the old windows for new products. The relationship between producer and customer thus changes from a one-off deal to a longer-term opportunity for re- and cross-sales across Schüco's product portfolio.

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