Amidst developing trends, the only real crime is sitting still

“They’ve been forced into trying out new buying behaviors, and then they’re keeping the ones they like” comments Lisa Anderson, founder and president of LMA Consulting Group, which specializes in manufacturing strategy and end-to-end supply chain transformation.

In recent years for HVAC distributors, the phrase “e-commerce” has represented a competitive challenge as brick-and-mortar distributors fend off online-only vendors. But as Anderson pointed out, COVID-19 work-related fallout has instigated an unexpected wave of instability and re-evaluation when it comes to purchasing habits.

This is certainly true for consumers, and as the “Amazon effect” has demonstrated, what becomes the new normal for consumers migrates into the expectations of those same people when they are on the job interacting with other companies.

The result of shaking up the customer’s mindset a little more? Added potential to expand a supplier’s business or customer base — but also a landscape where distributors can fall further behind due to complacency or inattention to their own e-commerce presence

Overhauls and Promo

David McIlwaine, president of HVAC Distributors in Lancaster, Pennsylvania, reported that he has “not seen a big change here, just that most distributors are offering improved online offerings, and so contractors are more familiar [with them] and more apt to utilize” them.

That may not sound like a sea change, but it’s a key change, according to Anderson.

“Folks who had already gotten into e-commerce along the line saw a sharp increase,” she said while discussing post-COVID activity. “Even if they didn’t have many sales, generally speaking, they gained customers.”

The companies that were able to enhance their presence were in position to reap the rewards. In the case of First Supply in Madison, Wisconsin, the company benefited from a proactive strategy and some coincidental timing.

Click here to read more.

 

Published in ACHR on Sept. 11, 2020