Compare the manufacture of a conventional water heater with the HE:

Conventional: http://www.youtube.c...tch?v=1ofSyXUW0TY

HE: http://www.youtube.c...tch?v=6nLuRvM1iMc

A.O. Smith will probably have to have competition from LG or Samsung to be forced to reduce the price. :-(

Cheers,
Scott.