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business to purchase from us . When a company loses its focus and identity it becomes a problem for the sector and so it ’ s important for us to stand by our model of only supplying to the trade ,” adds Kumar Singh , HVAC Product Manager at Metraclark .
QUALITY SUPPLIERS AND RELATIONSHIPS On-boarding manufacturers or new technology is not only about meeting volumes and management needs , or price for that matter . For wholesalers , not only do big brand names form part of their product ranges and for all products in fact , but they also need to meet certain standards and regulatory requirements where applicable , and even international energy efficiency ratings . They may further be required to comply to certain local criteria too .
“ We are constantly approached by suppliers that would like to see their product marketed in South Africa and as a wholesaler we have to answer a number of questions such as : is this a good product for our business ? Is this good for the industry ? Is there really a home for the product in the sector ? Once that outcome is established , part of the valuation will continue with supplier quality and reliability , that are key elements and are basically the strength of any brand ,” says Taylor .
“ We are constantly approached by suppliers that would like to see their product marketed in South Africa and as a wholesaler we have to answer a number of questions . ”
When you talk about quality and reliability , big brand names would obviously come to mind while some may still be grappling with the chances taken on cheap imports from the East . There are of course companies that enter a market with the objective to dump poor quality goods into a country and will aim to sell X number of units and then disappear , essentially leaving many clients unhappy without access to service and repairs , and even total replacement . However , this is not always the case while quality and reliability has shown great improvement in recent years from that region and where wholesalers may very well engage given all the boxes are ticked .
Where wholesalers tend to avoid engagement , are in situations where there is very little demand for a particular product , or there might be an opposition product already in the market that is well established – making moving the product that much harder and therefore also less appealing .
© RACA Journal | Benjamin Brits
Wholesalers often stock a very large range of products and components to service the market adequately .
For wholesalers , an exceptional relationship with their supplier ’ s is an obvious proviso , where long-term engagement is the objective . Wholesalers would note that the relationship , support , and loyalty with suppliers would be on par with that of the relationships with their clients – because there is benefit to all parties .
“ In terms of suppliers , quality is important and as important as the product sold is the technical support and service we provide through our own qualified technicians and teams . Also , the functions such as custom design and commissioning for systems through our engineering department all make it possible to support our customers in their service to their own clients . This has always been something that has been important to us ,” says Singh .
STOCK ITEMS , VOLUMES , AND PRICING FACTORS In terms of stock and volumes , quantities are mostly based on historical movement and there are naturally some items that move a lot quicker than others . However , there are so many variables involved with stock that can be as simple as supply and demand and can move according to industry trends or current trading environment factors . Dynamics could also be linked to legislative changes and the changes in refrigerants for example .
“ Stocked items could also vary according to factors such as green technology adoption , changes in the construction sector , the requirements from consultants or particular demand in certain sectors such as mining . If you had to look back over the last couple of years , South Africa has built more malls per head that the US so there is continual adaptation to what the markets require . We are also in a phase of our own regulatory changes that will play a role in what is supplied from wholesalers . In Europe , the HVAC industry is already shifting large scale to
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