This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
This Website Uses Cookies
By closing this message or continuing to use our site, you agree to our cookie policy. Learn More
This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
ACHRNews logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Subscribe
  • Sign Out
  • My Account
ACHRNews logo
  • Magazine
    • Subscribe
    • Current Issue
    • Digital Edition
    • Archives
    • The NEWS eNewsletter
  • News
    • Breaking News
    • Newsline
    • FYI
    • Distribution Trends
    • Standards & Legislation
    • Manufacturer Reports
  • Products
    • HVACR Industry Store
    • Top 20 Products of 2018
    • Interactive Product Spotlights
  • Multimedia
    • Videos
    • AHR 2019 Videos
    • Podcasts
    • Infographic
    • Photo Galleries
    • Webinars
    • eBooks
    • The NEWS HVACR Quiz
    • Online Poll
  • Refrigeration
    • Refrigerants
    • Refrigerant Regulations
    • Reclaim
    • FROSTlines
  • Service
    • Testing, Monitoring, Tools
    • Duct Dynasty
    • Service 101
    • Components & Accessories
  • Business 101
    • Training & Education
    • Service, Apps & Software
    • Opinions
    • Guest Column
    • The Coach's Blog
  • Residential
    • Home Automation
    • Residential Ductless
    • Residential Geothermal
    • Residential IAQ
    • Residential Cooling Showcase
    • Residential Heating Showcase
  • Commercial
    • Internet of Things
    • Commercial Ductless
    • Commercial Geothermal
    • Commercial IAQ
    • Commercial Cooling Showcase
    • Commercial Heating Showcase
    • Marijuana Market
  • Directory
    • Manufacturers
    • Wholesalers
    • Consultants/Services
    • Manufacturers Reps
    • Associations
    • Parts & Equipment Exporters
    • List/Update Your Company
  • More
    • Editorial Calendar & Editor Assignments
    • Calendar of Events
    • Classifieds
    • Custom Content & Marketing Services
    • Continuing Education
    • Market Research
    • Sponsor Insights
    • eProduct Info
    • White Papers
    • Contests
  • Contact
    • Advertise
    • Submit a Letter
Home » Blogs » Opinions » Selling Direct: To Fight or Not To Fight?
John Hall is the Business Editor. E-mail him at johnhall@achrnews.com.

Selling Direct: To Fight or Not To Fight?

August 27, 2007
John R. Hall
No Comments
Reprints

There are many external factors that have an impact on HVAC contractors’ businesses. The most notable is the weather. We all know what extremely hot or cold temperatures can do for HVAC contractors’ and distributors’ successes. A lot of planning goes into yearly budgets based on weather conditions.

But what about other external things that tend to wreak havoc on planning, budgeting, and most importantly - profitability. Are there just some things, besides weather, that can’t be overlooked and need to be addressed? Or is it better to concentrate on the core business and not worry about things beyond your control? That’s a tough question. One that has been magnified is the growing menace of businesses that prefer to cut out the middleman and sell directly to the end user.

I’m talking about Internet retailers who sell HVAC equipment directly to the end user and cut out the distributors and contractors, thus robbing the brick-and-mortar businesses of profits made on equipment markups and warranty work, all in the name of cyber-profiting.



THE PLAYERS ARE EASY TO FIND

Most of you probably know some of the companies I am talking about. There is no need to give them any extra ink in this column. I’ll say for the record that I don’t like or endorse their methods of doing business. A lot of good businesses are affected by what they do - HVAC contractors and distributors who have taken many years to build up a good business, long before the Internet, only to see Internet profiteers chip away at their customer base.

I’ve written about these Web portals before, back in the heyday of dot.coms and the effects that online buying had on established neighborhood businesses. I even took my argument to some manufacturers and one replied by saying its company only saw online selling as a regional problem, and that it wouldn’t impact its business. The newness of the Internet probably kept others from commenting on its impact because there wasn’t enough established criteria to make an informed opinion.

Well guess what? There is enough criteria now. The problem just may be: how to wean the needed information, i.e., sales figures, from Internet HVAC retailers or manufacturers whose products these retailers sell. The former may be willing to share those totals while the latter, I’m guessing, might not.



WHO IS RESPONSIBLE?

I’m not going to make a judgment about which parties are the most responsible for cutting HVAC contractors and distributors out of the profit picture. On the one hand, you could blame the new kids on the block - Internet retailers who attempt to sell HVAC equipment and parts to anyone with an e-mail address, credit card, and deliverable address (and despite the fact that they are selling equipment to people who, by law, cannot install it).

On the other hand, you could blame the manufacturers for allowing their equipment to end up in the hands of these retailers, whether the retailers bought them directly from the manufacturer or through a third party.

I do know that most, or hopefully all, manufacturers automatically void the warranties on their products if they are sold directly to consumers. That is a good and obvious move that all manufacturers should make. I know they are in the business of selling boxes but their real customers are contractors and distributors, not the end users. You can debate that with me if you’d like but you won’t win the argument.

HVAC contractors can fight back by not installing equipment that they did not sell to the customer - period. It doesn’t matter where the equipment came from. By not installing it you are telling the end user, and the Internet retailer, that the Web is not the place to buy or sell HVAC equipment.

Or, you could do what some businesses choose to do: ignore this practice and continue to do what they have done for many years. That is, offering the best service possible backed up by experience and trust.

Maybe there are HVAC contractors who can profit by fixing the mistakes of others who choose to install their own equipment. And maybe there are HVAC distributors who can profit by selling parts needed to correct a faulty installation. Heck, there is always money to be made fixing other people’s mistakes.

Just be aware that Internet selling is not a blip on the screen - it is here to stay and getting even bigger. How you choose to deal with it is entirely up to you.

Publication Date: 08/27/2007

Recent Comments

Altough I agree you should be diligent and...

Nation Wide Incentives

Beating the 5-minute limit

So sorry to hear of Joe's passing

There are sources of Info

Blog Roll

Editors Blog

Guest Blog

Opinions

John Hall is the Business Editor. E-mail him at johnhall@achrnews.com.
You must login or register in order to post a comment.

Report Abusive Comment

Subscription Center
  • Subscribe
  • Renew
  • Create Account
  • Change My Address
  • Pay My Bill
  • Free eNewsletters
  • About News Network
  • Customer Care

More Videos

Sponsored Content What Is Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the ACHR News audience. All Sponsored Content is supplied by the advertising company. Interested in participating in our Sponsored Content section? Contact your local rep.

Close
Trane-indoor-air-quality-product-01
Sponsored By
Trane Residential

Protecting Your Customers’ Indoor Air Quality Is More Important Than Ever

From seasonal maintenance to a system upgrade, your business is actually centered around providing the best indoor air experience, with quality at the core.

Popular Stories

R-22 Phaseout

Using (or Abusing) the R-22 Phaseout as a Sales Tool

Senate HFC Phasedown Bill

Senate HFC Phasedown Plan Debuts With Broad Support

Goodman employees work to manufacture highend equipment.

The HVAC Contractor’s Guide to High-End Trends Coming in 2020

Manufacturers Meet Demand for More Intelligent Building Controls

Manufacturers Meet Demand for More Intelligent Building Controls

Breaking News - The ACHR News

Ingersoll Rand Introduces Future Climate Company, Trane Technologies

The ACHR News Airpod Giveaway

Events

September 16, 2020

2020 World Congress for Solar Cooling

IASC seeks submissions that represent the best contemporary and innovative technology and thinking about Solar Cooling from a global and diverse range of designers, consultants, practitioners, engineers, architects, educators, thought-leaders, students and other professionals concerned with cooling, people, buildings and energy.
December 30, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Poll

Holiday Appreciation

What is your preferred way to show employees your appreciation during the holiday season?
View Results Poll Archive

Products

"More & New" HVAC Spells Wealth - book

"More & New" HVAC Spells Wealth - book

See More Products
The NEWS - ACHR - Logo The NEWS - ACHR - Digital Edition
Digital Edition

ACHRNEWS

The ACHR News - December 2, 2019

2019 December 2

Week 1: December 2
In this issue of The ACHR NEWS, we look at unique applications of HVAC technology, and new markets contractors should consider expanding into.

Week 2: December 9
We also examine Variable Refrigerant Flow (VRF) technology, and the benefits that contractors can pass along to their customers through the equipment.

View More Subscribe
  • Resources
    • Submit a Letter
    • Submit a Press Release
    • Mechanical Group
    • List Rental
    • Ad Specs
    • Reprints
    • eProduct Info
    • Survey And Sample
    • Privacy Policy
  • Want More?
    • Subscribe
    • Connect
  • Subscribe
    • Subscribe
    • Renew
    • Create Account
    • Change Address
    • Pay My Bill
    • Free eNewsletters
    • Customer Care

Copyright ©2019. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing