Parmalee's invention did not get as much attention as he had planned, as most people could not afford to install a sprinkler system. Once he realized this, he turned his efforts to educating insurance companies about his system. He explained that the sprinkler system would reduce the loss ratio, and thus save money for the insurance companies. He knew that he could never succeed in obtaining contracts from the business owners to install his system unless he could ensure for them a reasonable return in the form of reduced premiums.