Facility managers often prefer the flexibility of the open market to reduce costs. If the "Original" accessories are priced significantly higher than third-party equivalents without demonstrated ROI (via energy savings), Trane risks alienating price-sensitive commercial clients.
HVAC equipment manufacturing operates on moderate margins (typically 10–15%). Conversely, the aftermarket parts and service sector operates on significantly higher margins (often 30–50%). By implementing OAN strategies, Trane aims to capture the "lifetime value" of the equipment, ensuring that maintenance revenue remains internal rather than leaking to third-party suppliers like Watsco or Fastenal. trane oan