The North American HVACR distribution market may be a multi-billion-dollar-a-year industry, but profit margins can be slim, and to avoid investing in excess inventory, competition for shelf space is fierce. As the gatekeepers between manufacturers and contractors, distributors are tasked with deciding which new products deserve a place on the shelf and which ones may not appeal to their customers.
That can be a difficult job, as distributors must sort through a variety of products that come to their attention through customers, employees, or vendors. Each product must be evaluated individually, taking into consideration a number of factors, including price, sales potential, and value to the customer, before a decision can be made as to whether it makes sense to stock it.