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
Distribution Strategy
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?
Ferguson Q4 Earnings Report … Preparing for Increased HVAC Focus
Last week Ferguson shared their FY Q4 earnings and held their analyst call. While not “focused” on the HVACR market, Ferguson is growing in this space and sees opportunity to increase their influence and, more importantly, gain share in the market … and they have the war chest available to make the investments and “buy-in.” From the Ferguson earnings call (words in italics are … [Read more...] about Ferguson Q4 Earnings Report … Preparing for Increased HVAC Focus
Loyalty Helps Take Share
We know you, or your company, is planning for 2025. We also know that many have concerns going into 2025. The question is, “what will 2025 bring?” And with PE firms supporting HVAC distributors with incremental investments, Ferguson pursuing dual trade contractors, new construction in 2025 questionable in some markets, prospects for the renovation market due to Fed cuts and … [Read more...] about Loyalty Helps Take Share
Inventory Planning Approaches for 2025
As we enter the final 4 months of 2024, I am having many conversations with HVACR distributors and manufacturers about their into stock inventory positions. HVACR growth rates have slowed from the 20's% from April 2021 to April 2023 days and now are relatively flat (2023 vs 2024). Inflation and price increases have continued to climb since early 2023. So, that means that … [Read more...] about Inventory Planning Approaches for 2025
