Sometimes, we have water heaters returned to us for various reasons: damaged in transit, customer changed their mind, or it simply won't work for a customer's setup, etc. When we receive those water heaters back to our warehouse, we cannot sell them as 'NEW' products, because technically they possibly have been used and/or opened. Our technicians will hook them up and test them to ensure they are in great working condition and then we resell them at a discounted price. These are often refurbished and thoroughly tested water heaters and by no means are they brand 'NEW'. Open Box is qualified as a water heater that was maybe used for a short bit by a customer and they changed their mind and returned. The water heater itself is in good condition, it's just been used. Scratch & Dent is qualified as a water heater that has sustained some minor cosmetic damage and most of the time has been used previously. We thoroughly test ALL of these water heaters prior to selling them and they come with the same warranty as a 'NEW' water heater. Loads of customers enjoy taking advantage of the discounted prices. Used water heaters need love too