Recently I was talking with a client about strategic planning as they are beginning their journey to define their path forward to 2030. They’ve set a goal, identified values, have a vision of their purpose, and currently have a strong business. The executive management team is being brought together to share insights and build the “framework” of the plan. After that, others … [Read more...] about Is Your Team Curious? Are You Investing in “Ventures?”
Distribution Strategy
What HVACR end customer trends are crucial for 2025?
In 2015 when I was on the HD Supply Power Solutions team, I started some research with the goal of getting feedback to make better pricing decisions with direct surveys for our associates. We were roughly a $2 billion dollar business trying to improve our GM% and profits. Over the past ten years that survey has grown in size and scope to include end customers, distributor … [Read more...] about What HVACR end customer trends are crucial for 2025?
Auer Steel, investing for customer and the next generation’s success
As I was going through my story idea notebook on what to write for this week's column, I saw a LinkedIn notification on a posting from Jon Hirsch. I started following Jon's work as Director of Business Development for Auer Steel & Heating Supply Company (HVACR distributor with locations in Wisconsin, Minnesota, Michigan and North Dakota) about a year ago. What jumped … [Read more...] about Auer Steel, investing for customer and the next generation’s success
Embrace Change to Adopt AI and Improve Profits
The concept of digital transformation, let alone AI, as a future driver for your organization is probably a folly unless … You have a leader, and leadership team, which believes in change. There are two key words in the above sentence … “leadership” and “change.” Leadership infers vision, an ability to perceive “need,” an entrepreneurial mentality that desires growth, … [Read more...] about Embrace Change to Adopt AI and Improve Profits
Is your proven experienced associate led pricing model approaching a cliff?
If your winning pricing model is still being led by just your experienced sales team, it is probably time to make changes for the future. I had the opportunity to sit in on the excellent HARDI Pricing certification session that kicked off recently with my friends and colleagues leading the session from ACTvantage: Senthil Gunasekaran and Pradip Krishnadevarajan. Senthil and … [Read more...] about Is your proven experienced associate led pricing model approaching a cliff?
Rebates + Actionable Intelligence (AI) = Increased HVAC Profits
I was with a manufacturer last week and we discussed distributor acquisitions and “the why?” One of the data points we discussed was the declining net profitability of the business as a percent of sales and the corresponding increase in the contribution that rebates make to distributor profitability, which is increasing. They further affirmed this with the comment “that … [Read more...] about Rebates + Actionable Intelligence (AI) = Increased HVAC Profits
Are / Can Distributors Be Demand Generators?
Recently I visited a manufacturer client who asked me about “the channel”. Specifically, they wanted to know: “What drives distributor product selection, what is the food chain, what’s the value of each?” “Are distributors proactive in creating opportunities and selling our types of products?” In all transparency, this is a manufacturer who is owned by a PE firm and … [Read more...] about Are / Can Distributors Be Demand Generators?
