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
Profitability
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
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
Capitalize on the Data Center Boom: AI for HVAC Distributors
The data center market, as many know, continues to boom. According to recent data from the Bureau of Labor Statistics, almost 33% of the new construction office spend in May was by data centers! There are data center industry reports of 100 data centers scheduled to be built for the next 10 years ... and this may be conservative. The driver of the need for all of this … [Read more...] about Capitalize on the Data Center Boom: AI for HVAC Distributors
Inventory Management a Foundation for Growth
As an HVACR distributor or manufacturer having strong local inventory near the end customer and where they work, is the most important factor for growth. As a long-time distributor, I know we all talk about "our people" as being the driving factor for growth, and that is true. We could not service our customers without our great people, but I have worked for distributors … [Read more...] about Inventory Management a Foundation for Growth
Improving Pricing and Inventory Knowledge with HARDI Certification
I believe one of the biggest challenges as distributor is managing pricing and inventory effectively because you can be handicapped by your own internal viewpoints. Your culture as a distributor is crucial to your success, but it can be limiting you in terms of new ideas and approaches in two crucial areas - Inventory and Pricing. I’ve been fortunate to work for six great … [Read more...] about Improving Pricing and Inventory Knowledge with HARDI Certification
Driving Distributor Profitability Through Operational Efficiency
The “go-go” days of post-Covid are gone. We’re back to pre-pandemic industry growth rates. Maintaining, and improving, net profitability in the face of slowing growth, increased cost structure, and stagnant (if not decreasing) margins, requires improved operational efficiency, inventory management, strategic price management, appropriate implementation and utilization of … [Read more...] about Driving Distributor Profitability Through Operational Efficiency
Can Yesterday’s Pricing Strategies Drive Tomorrow’s Profitability?
Pricing is an important element of a distributor's go-to-market approach. If you're not, at least, competitive, you know what will happen to sales. But if you are too low, getting a reputation for that isn't good, nor does it help your bottom line. The past few years, inflation and product availability enabled HVACR distributors to, hopefully, optimize pricing (and net … [Read more...] about Can Yesterday’s Pricing Strategies Drive Tomorrow’s Profitability?
Volume Rebate Webinar December 14
Register and join us Thursday, December 14th, at 11:00 AM ET for our State of Volume Rebates Webinar when we'll share results from our recent research and discuss ideas on how to make rebates more effective for your organization. As you may know, earlier this fall we sought distributor and manufacturer input regarding annual / volume REBATES. This research is a follow-up … [Read more...] about Volume Rebate Webinar December 14
