Why did Monitor go out of business????

[farmer4690]

Just curious why monitor closed their doors. I heard a rumor that the tsunami that hit China was the cause , but I am not sure if that is true. I feel they produced a good product and I am wondering what caused their demise?

[hawkins111]

Here in Alaska, Monitor was the first into the vented heater business. They had a monopoly for 4 or 5 years. As soon as Toyotomi came into the market here in Alaska the hand writing was on the wall as to who would dominate this market. Monitor Products, Inc's dealership program was a disaster. Overlapping territories, high replacement parts costs and not much feed back from the manufacturer, all made it very easy for a competitor to move in. There were dealers in our area that did not advertize for 15 years. When I filed for my dealership I became aware of another dealer just 6 miles away. I asked him if he minded if I applied and he said, "No, I have not sold any parts in years". Monitor did not even know they had this dealer in their system. My dealership only lasted 9 months, as Monitor put another dealer in my town shortly after I purchased my inventory ($13000.00).

Product loyalty, reasonable priced replacement parts, attention to your dealers and product upgrades when needed is the recipe for success. In my opinion it is hard to operate as a monopoly. If you don't have someone nipping at your heals you get SOFT. Tom Hawkins, Bethel Alaska

[farmer4690]

Well said, Tom.
So in summary, Monitor felt the heat and got out of the kitchen due to Toyotomi????

[hawkins111]

I would be very interested in what East Coast dealers have to say?

[HayZee518]

MPI remained a monopoly on their parts. But what I think happened, there were people that got sick n tired with what the dealerships were charging to do overhauls and service calls - i.e. $350 an hour just to open the heater. This, followed by DYI ers trouble shooting and repairing their own heaters led to the demise. The liability issue was out the window. Kerosene used to be a cheap source of home heating but its rates skyrocketed and vented heaters were the in thing. Next came propane, now their per gallon rate is following the same route as kerosene. Coal is another "cheap" fuel. Their per ton costs are going up too. I used to buy coal - 5 bucks per 40# bag. It is now $11.49 per 40# bag, so my pot bellied stove now sits idle.

[Bryand]

I would be very interested in what East Coast dealers have to say?

The problem was the same on the East Coast too many dealers. Kerosene too high. Tried to build a fancier heater at a higher price and priced their self out of business. A heater that came on and off with a thermostat would have been great without all the bells and whistles. The wholesale distributor made all the money.

[hawkins111]

I would have thought the gas model Monitor would have been a real hit on the East Coast, but you hardly ever hear about them. Even here in Alaska there is some natural gas, but you never see a Monitor. Rinnai would be there competitor. Tom