Mention rebates to distributors and manufacturers and you’re sure to have an interesting conversation. Manufacturer Views on Rebates Manufacturers question their efficacy in driving incremental sales, express frustration in their lack of behavioral modification of distributor field personnel (branch managers, salespeople, purchasing personnel), but feel / recognize that it is … [Read more...] about Rebates … The Gift that Keeps on Giving
Distribution Strategy
ChatGPT, AI, Office, Teams and More Technology to Power Your Business
Within distribution there is a continuous, and increasing, call for distributors, manufacturers, and manufacturer representatives to “invest in technology.” And I would presume that companies are spending more on technology / digitalization than ever before. It may not show up in the IT budget, but marketing, pricing, sales, warehousing, manufacturing and other departments now … [Read more...] about ChatGPT, AI, Office, Teams and More Technology to Power Your Business
Is AI Coming to Your Warehouse?
The technology topic of the year in distribution has been, and will continue to be, AI. In reality, much of AI is really ML (machine learning) but it's not as "sexy" to talk about data being built into algorithms, to mine data and then deliver information, insights and/or potentially predict (or recommend) actions. The difference between AI and ML, from a theorist's … [Read more...] about Is AI Coming to Your Warehouse?
Distributors – Planning Marketing Strategy for 2024
The HVAC market has experienced a dramatic slowdown compared to the past few years, which, with the benefit of hindsight, some of the slowdown / decline should have been expected (can’t expect price increases and supply chain issues to be a “benefit” to distributor sales long-term.” According to the June HARDI report, sales were down 6% but, perhaps more disconcertingly, is … [Read more...] about Distributors – Planning Marketing Strategy for 2024
The Road to a New ERP System
Deciding on an ERP system is one of the most challenging decisions for an HVAC distributor given its impact on business operations … everything from easy of doing business, ability to integrate with other tools, access to information, cost (acquisition, maintenance, training, productivity) let alone it touches every person who interacts with a company … associates, suppliers … [Read more...] about The Road to a New ERP System
Labor. Tomorrow’s Workforce is Smaller
Labor. Many have talked about it’s shortage. Be it a lack of electricians, a lack of qualified people for distributors to hire, or a lack of staff for manufacturers. Many have “blamed” Covid, the focus on “work from home”, an emerging “gig” / freelance economy, and other reasons. Lots of efforts, and initiatives, have been undertaken to “get people back to work.” Recently, … [Read more...] about Labor. Tomorrow’s Workforce is Smaller
Using Digitalization to Optimize Operations & Drive New Business in HVACR
To combat the challenges of today’s marketplace, progressive distributors looking towards the future are investing more and more into digitizing their processes to optimize performance. These companies recognize that: Data can be monetized. This means that information in their ERP systems can be acted upon rather than remain in data silos and databases. Whether this is … [Read more...] about Using Digitalization to Optimize Operations & Drive New Business in HVACR
ChatGPT for HVACR Distributors
Let’s have a little fun for a change or, in the words of the comedienne Joan Rivers, “can we chat”? For the past few months there has been lots of media coverage, and conversation, about ChatGPT. Microsoft, which reportedly invested over $13 billion into the company for “only” 49% ownership is a major driver of this new AI (artificial intelligence) technology and is taking a … [Read more...] about ChatGPT for HVACR Distributors
Why are Salespeople Profit Adverse?
Having worked with many distributors over the years, one observation about many distributor salespeople are that they are customer pleasers. Most are profit adverse. Sure, many are on commission. And many of those commission plans are built around a percent of gross margin but, as soon as a customer hints that they want to negotiate, salespeople are willing to lower the … [Read more...] about Why are Salespeople Profit Adverse?
Better HVACR Sales through Better Sales Coaching
Field level sales management is one of the most challenging roles in the industry, and, in many cases, one of the least effective roles in distributors. Why you ask? Because the people who are placed in these roles typically are: Top producing salespeople who have their process and think others should adopt “their way”. They come into the role with no sales … [Read more...] about Better HVACR Sales through Better Sales Coaching
AD Enters Leadership Training Arena; Association Competition?
AD launched an interesting, and perhaps valuable, initiative that, on the face of it, would appear to target a core element of an association’s value proposition … training. And, it is interesting given that, presumably, a significant percentage of leading distributors within the marketing / buying group are members of various associations. However, AD, like many … [Read more...] about AD Enters Leadership Training Arena; Association Competition?
Distributors – Maximize Your Volume Rebates with a Strategic Revenue Plan
Last week we shared highlights from our recent research on the State of Volume Rebates. But, given the importance of rebates to the net profitability of distributors, I reached out to a friend and former distributor client, Greg Smith, to share his first-hand experience, and best practices, to help distributors optimize their rebate earnings. For those who don’t know … [Read more...] about Distributors – Maximize Your Volume Rebates with a Strategic Revenue Plan
Recession? 10 Tips to Help HVACR Distributors Avoid One
You may remember the phrase “it was the best of times; it was the worst of times.” Well, the past two years have had both. And, for that matter, this year for many may encompass both with strong sales in the first half of the year and the rate of growth slowing significantly the second half … especially if you factor out price increases. It is leading to the question, "Is a … [Read more...] about Recession? 10 Tips to Help HVACR Distributors Avoid One
Part 1 – How manufacturers are re-examining their HVACR distribution channel strategy for 2023
Leading manufacturers are always preparing for and examining their HVACR distribution channel for adjustments in 2023. Get yourself prepared for the coming manufacturer-manufacturer rep- distributor realignment games to come. Future-focused manufacturers have been re-examining their channel strategy for the past few years. As business slows, they will step up communication … [Read more...] about Part 1 – How manufacturers are re-examining their HVACR distribution channel strategy for 2023
Understanding Personalities through DISC to Drive Sales and Productivity
Understanding people is integral to success in business. whether it is serving customers, others within your company or managing people. Providing staff with the training to observe behavioral traits that will enable improved interpersonal skills and communications inevitable generates improved teamwork, productivity and can translate into increased sales and … [Read more...] about Understanding Personalities through DISC to Drive Sales and Productivity
