Marketing to a new generation

It's evident that leasing is attractive to consumers and is shifting America's buying habits. The popularity of leasing in the auto industry alone has risen significantly in recent years due to the increased cost of vehicles. Today, several manufacturers even lease pre-owned for the very same reason. The auto industry statistics show that consumers prefer a lease rather than a purchase arrangement. Statistics reveal that in 1993, 62% of new luxury cars shipped were leased. But leasing is going downscale; for instance, 27% of mid-sized cars were leased last year along with 21% of compacts and 11% of subcompacts.

While the auto industry faces an inherited dilemma with a deluge of used cars over the next several years, leasing heat pumps has its individual benefits for cooperatives, guaranteeing a consumer for many years. It also makes the electric industry's flagship against the competition more affordable for the low and moderate income sector increasing market potential. In fact, Southwestern Electric Cooperative has successfully reached an agreement with Farmers Home Administration officials representing 12 south central Illinois counties to include the Cooperative's GEO-LEASE Program in the administration's affordable housing loan program.

With the present population trends transforming all market considerations in the world, leasing heat pumps becomes an important factor in our efforts for increased market share and efficiency. The ever-increasing cost to consumers will continue to be exacerbated by higher taxes, environmental considerations such as recycling, and other domestic concerns which will further reduce the consumer's ability to buy high-ticket items such as geothermal. These concerns, coupled with consumer behavior characteristics of various age groups, bring us to the threshold for adjusting to the times and consumer needs if we are to survive in today's competitive arena. For instance, while those over 45 years of age purchased primarily on price and value, today's generation under 45 purchase on convenience and service.