Revolutionizing the HVAC/R Marketplace” is the title of the presentation Watsco delivered to the investment community last month. Innovative application of technology is transforming competition in every market including HVACR distribution. Deploying mobile device is the first step. It enables the customer to be more efficient and allows the distributor to operate more effectively.


Technology at Watsco

Technology is allowing Watsco and every distributor to take the second step of operating more efficiently to support their customers by measuring the following:


-How long does it take for a customer to place an order?

-What are the recommendations that should go along with that order?

-How long does it take to pick-pack-ship the order?

-How accurate is the order?

-How long does it take to process the payment?

-How profitable is the order including all processing costs?

-How transition from an 8 hour business to a one that is open and available to support customers 24/7?


Below I have duplicated my favorite slide from their informative presentation.  It adds the evolutionary steps along the journey for these three themes.  The objective for Watsco and every distributor is climbing the Y-axis and fortifying their Competitive Advantage. 

Ascending the Analytics Sophistication Curve

Revolutionizing the HVAC/R Market is the story of how Watsco is using technology to move along the sophistication curve to expand their competitive advantage. It is an application of the ideas conveyed in my favorite book of 2016 [see previous DDN], “Becoming a Digital Distributor” by Mark Dancer. As you start supporting your customers via mobile devices, this opens the door for you to be collecting more data and building your competitive advantage. There are other things that you can be doing right now that as a HARDI member.


At the end of their presentation, Watsco management indicated that every source of data is another thread of insight that can be woven together to fortify the decision making ability. Two valuable threads of data HARDI distributors should be using are the TRENDS report and the Unitary Market report. The insight available from these services help support your movement along the sophistication curve. They can help support your competitive advantage while your mobile capabilities are gaining speed. TRENDS and the Unitary Report provide a framework to interpret the new operating data you will be processing. Additionally, this spring you will have the ability to participate in our revised annual benchmarking program Distributor Performance Dashboards. As a HARDI member you have access to these benefits that fortify your competitive advantage.  Please contact Brian at HARDI if you are ready to boost your competitive advantage with this market insight.

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