Feature
WHOLESALERS –
PROVIDING MULTIPLE SUPPORTS
By Benjamin Brits
The role of wholesalers in any sector may not get much thought , while in fact they can add a great deal of value to an industry .
Some of the areas that wholesalers add value include advanced knowledge in market trends and conditions , supporting new technologies to market , stock holding and storage . Further , wholesalers could essentially provide a finance arm to industry with varied account models , offer convenience for clients with national footprints , distribution , and delivery options .
Historically the wholesale environment has always been structured depending on how the world economy performs . In time of contraction , there is a lot of consolidation in terms of brands while in times of expansion there is breakaway with the separation or creation of new entities to again service a flourishing market . They key factors however always remain in the success of the wholesaler being stock volumes , product mix and product knowledge while reliability builds trust with customers .
INDUSTRY TRENDS “ More recently , pre-Covid , trends showed a strong heading towards technology adoption and solutions in energy efficiency . Now , post-Covid lockdown and subsequent economic conditions , we have found that purchases have become a lot more cost sensitive . So , clients have been looking much closer at capital expenditure and up-front costs of energy efficiency because with these products and solutions , a payback period is involved as the up-front cost is higher . When things are going great , it makes sense to spend on technology . When things are tough , people just want to have open stores or equipment fixed as cost effectively as possible . So , a definite trend is that up-front cost is important right now ,” says Rodney Taylor , managing director of Eurocool .
Another trend that has emerged , and that shows the great significance of its contribution to the economy of South Africa , is the impact of the lockdowns on the hospitality industries and the limitations on travel to the country . The rolling waves of infections have also prolonged this sector being able to get back on its feet and thus affecting the HVAC industry in a big way with occupancy rates falling significantly .
Statistics show that tourism alone accounts for nearly 7 % of the country ’ s gross domestic product and not to mention the
Eurocool
significant contributor to employment at 4.5 % ( Figures from StatsSA ). Essentially , a very big sector for the HVAC world where no , or low occupancy , at venues means plant equipment does not work , room ACs do not work , and investment into the sector is stalled on new projects .
“ The market requirements today are also driven primarily from the end user and contractors . End users particularly , are becoming more and more informed of what ' s happening out there with internet access and social media being what it is . If one goes back a few years , the wholesalers would drive industry changes while a scene from today is one where the end-users are driving a lot of the market trends because of their increased knowledge and access to vast amounts of information ,” adds Taylor .
“ A wholesaler ’ s greatest function has always been supplying to the trade while supporting the brands we represent through marketing and distribution channels . For other businesses that have operated on similar protocols , trends are that they have opened purchasing to the end users . To work with us we still insist that clients are trades people and must have a registered
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Client service and knowledgeable advice is available from wholesalers who are at the forefront of the latest technologies .
www . hvacronline . co . za RACA Journal I August 2021 25