{"id":20040,"date":"2020-06-19T13:38:50","date_gmt":"2020-06-19T17:38:50","guid":{"rendered":"https:\/\/blueridgeglobal.com\/?p=20040"},"modified":"2025-09-15T18:54:32","modified_gmt":"2025-09-15T22:54:32","slug":"the-3-ss-plaguing-your-hvac-customers-part-1","status":"publish","type":"post","link":"https:\/\/blueridgeglobal.com\/blog\/the-3-ss-plaguing-your-hvac-customers-part-1\/","title":{"rendered":"The 3 S\u2019s Plaguing Your HVAC Customers: Part 1"},"content":{"rendered":"[vc_row][vc_column][vc_column_text]<a href=\"https:\/\/blueridgeglobal.com\/wholesale-distribution-software\/hvacr-plumbing-distributors\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-20043\" src=\"https:\/\/blueridgeglobal.com\/wp-content\/uploads\/2020\/06\/hvac-tech-1.png\" alt=\"distribution-software-hvac\" width=\"450\" height=\"299\" \/><\/a>There\u2019s a ripple effect in HVAC supply chain.<\/p>\n<p>If you are an HVACR distributor, much of <em>your<\/em> business has had to change because of significant changes in the way your customers run <em>their<\/em>s. Understanding their changing needs and being able to adapt your products are key to delivering value to drive your growth strategy.<\/p>\n<p>In this 3-part blog post, you will learn the 3 biggest challenges \u2013 \u201cthe 3 S\u2019s\u201d &#8212; plaguing your HVAC customers:<\/p>\n<ul>\n<li>Stiff competition<\/li>\n<li>Seasonality<\/li>\n<li>Shortage of Skilled Labor<\/li>\n<\/ul>\n<p>We&#8217;ll start with the first &#8220;S&#8221; today&#8230;<\/p>\n<h3>Stiff Competition<\/h3>\n<p>While the <a href=\"https:\/\/www.trendstatistics.com\/careers\/hvac-statistics\/\">HVAC industry is growing<\/a> quicker than average:<\/p>\n<ul>\n<li>The <a href=\"https:\/\/www.marketwatch.com\/press-release\/hvac-control-systems-market-size-2020-covid-19-impact-on-key-players-and-growth-rate-industry-share-manufacturing-cost-application-and-specification-forecast-report-2026-2020-05-15\">HVAC Control Systems market size<\/a> is valued at $14.5 billion and will increase to $29.59 billion in 2026, with a CAGR of 9.4%<\/li>\n<li>The amount of new air conditioners grew by 47% over 2017-2018<\/li>\n<li>6% of electric use in the country is for cooling homes and businesses<\/li>\n<\/ul>\n<p>&#8230; Their costs are high and their competition is tight, limiting the cash they have available to order products from you like they used to.<\/p>\n<p>To put this competition into perspective, research by IBISWorld found that no company has a dominant market share in this industry, and the largest company accounts for just <a href=\"https:\/\/www.dataforma.com\/common-hvac-industry-challenges\/\">5 percent of the industry\u2019s revenue<\/a>.<\/p>\n<h3>Extend Their Buying Power<\/h3>\n<p>So why not be the hero?<\/p>\n<p>Now may a good time to use promotions and incentives like forward buys with your customers to offset the dip in buying power. <a href=\"https:\/\/blueridgeglobal.com\/when-does-forward-buying-in-supply-chain-make-sense\/\">Related Read: &#8220;When Does Forward Buying in Supply Chain Make Sense?&#8221;<\/a><\/p>\n<p>A word of warning though. Don\u2019t run a promotion or offer without understanding the math behind it. What true value does the promotion bring \u2013 or not bring \u2013 to you? <a href=\"https:\/\/blueridgeglobal.com\/wholesale-distribution-software\/hvacr-plumbing-distributors\/\">Distribution-built software for HVACR demand forecasting<\/a>\u00a0can quickly analyze the economic trade-offs of those promotions to ensure they make sense.<\/p>\n<h3>Check Your Prices<\/h3>\n<p>Another by-product of competition is that your customers may not be willing to pay the prices you are charging:<\/p>\n<ul>\n<li>How much insight do you have into your prices vs. competitors&#8217;?<\/li>\n<li>Are overpriced\/underpriced products a threat to your revenue\/margins?<\/li>\n<li>What if you could strategically lower price on some items to deplete inventory surplus, or strategically raise price on higher-demand items to stimulate sales, turns and margins?<\/li>\n<\/ul>\n<p>News flash. You can.<\/p>\n<p>Innovative <a href=\"https:\/\/blueridgeglobal.com\/price-optimization-software-solutions-by-blue-ridge\/\">price optimization tools<\/a> will allow you to run valuable analysis on these things to quickly recommend price adjustments based on customer willingness-to-pay. Many distribution businesses don\u2019t realize that just <strong>a 1% price change can have over a 22% change in gross profits<\/strong> (for good or for bad!).<\/p>\n<p>Especially with more sales moving online, prices are highly transparent to customers, and can make or break your bottom line. <a href=\"https:\/\/blueridgeglobal.com\/price-optimization-software-solutions-by-blue-ridge\/\">Learn more about Price Optimization here<\/a>.<\/p>\n<h3>Next Up: Seasonality<\/h3>\n<p>We continue this series in <a href=\"https:\/\/blueridgeglobal.com\/the-3-ss-plaguing-your-hvac-customers-part-2\/\">Part 2<\/a> with <strong>how to tackle the problem of seasonal demand in HVAC:<\/strong><\/p>\n<p><a href=\"https:\/\/blueridgeglobal.com\/the-3-ss-plaguing-your-hvac-customers-part-2\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-20054 size-medium\" src=\"https:\/\/blueridgeglobal.com\/wp-content\/uploads\/2020\/06\/hot-summer-ac-300x202.png\" alt=\"the-3-ss-plaguing-your-hvac-customers-part-2\" width=\"300\" height=\"202\" \/><\/a>[\/vc_column_text][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>Demand forecasting software empowers HVAC parts distributors to better serve their customers in times of stiff competition, seasonality and labor shortage<\/p>\n","protected":false},"author":36,"featured_media":28287,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[52,88,78],"scp_topic":[185],"sector":[180],"technology":[177],"class_list":{"0":"post-20040","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-blog","8":"tag-change-management-adoption","9":"tag-promotion-pricing","10":"tag-featured","11":"industry-hvac","12":"product-demand-planning","13":"scp_topic-generic","14":"sector-generic","15":"technology-generic"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/posts\/20040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/comments?post=20040"}],"version-history":[{"count":1,"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/posts\/20040\/revisions"}],"predecessor-version":[{"id":35798,"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/posts\/20040\/revisions\/35798"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/media\/28287"}],"wp:attachment":[{"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/media?parent=20040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/categories?post=20040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/tags?post=20040"},{"taxonomy":"scp_topic","embeddable":true,"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/scp_topic?post=20040"},{"taxonomy":"sector","embeddable":true,"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/sector?post=20040"},{"taxonomy":"technology","embeddable":true,"href":"https:\/\/blueridgeglobal.com\/wp-json\/wp\/v2\/technology?post=20040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}