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HVACR Trends

HVACR Trends

Information to Inspire, Grow and Profit

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Special Pricing Agreements

SPAs- Are they Worth the Cost?

November 24, 2019 by David Gordon Leave a Comment

SPAs - Pennies from Heaven

In a penny nickel business, every penny counts. Which is why SPAs can matter. Increasing gross margins and, more importantly, net profitability, in today’s environment is extremely challenging.  Publicly-held national chains such as Rexel and WESCO report net profitability in the 4-4.5% range whereas the NAED PAR report typically proclaims a 2-4% net profitability for … [Read more...] about SPAs- Are they Worth the Cost?

SPAs – Are We / They In Or Out of Control?

September 5, 2019 by David Gordon Leave a Comment

SPAs, special pricing agreements, were originally conceived to ensure the integrity of local market into stock, and “street” pricing while providing distributors and manufacturers with a targeted sales pricing tool to deploy on an account-specific basis.  The definition of “account-specific” has broadened with many taking liberty with the breadth (with and without … [Read more...] about SPAs – Are We / They In Or Out of Control?

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