Functional service contracts for white goods: selling a function instead of a product (FUNSERVE)

Panel: Panel 4: Sustainable Energy Use in Buildings

Authors:
Christiane Dudda, Wuppertal Institut für Klima
Stefan Thomas, Wuppertal Institut für Klima
Kai Schuster, Projekt+E

Abstract

The FUNSERVE project, which is co-funded by the European Commission SAVE programme and started in June 1999, aims to examine and field test a new concept, which offers customers the services that they need (e.g. refrigeration) instead of an appliance that provides this service. With this concept, the leading European appliance manufacturer Electrolux and three electric utilities in Germany and Austria will jointly offer to customers a package consisting of a very energy-efficient appliance, full maintenance, and perhaps the electricity and water it needs, for a fee collected with the utility bill.

This approach will increase the market share of energy-efficient appliances by overcoming the barrier of a higher initial investment. It can be a successful value-added service for the electric utilities in the liberalised market. And it can reduce waste, since used appliances are expected to be refurbished by Electrolux and rented or sold again.

An intensive customer survey in three German and Austrian cities yielded promising results. Between 10 and 20% of the respondents showed a high interest in using such a service, and the proportion was even higher for those who are about to acquire new appliances. Customer surveys and a limited field test in Sweden confirmed this. In Germany and Austria, field-testing of the concept will also be the next step.

The paper presents current results from the FUNSERVE project.