Ferguson vs Watsco: HVAC Distribution
Former HVAC Manager at Ferguson
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Ferguson vs Watsco: HVAC Distribution(January 30, 2024)
Former HVAC Manager at Ferguson
Interview Transcript
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Why does HVAC have exclusive territories while plumbing and other categories do not?
That's an interesting question. Unlike HVAC, plumbing does not have exclusive territories. Most plumbing distributors have access to all lines. For instance, on a faucet line, if I'm a distributor doing a lot of business with Delta, Kohler may not give me preferred pricing, but I still have access to both.
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This is more prevalent in HVAC than in plumbing?
Yes, I believe that the dealer expects more, or possibly needs more, from you in the HVAC sector. One question that arises is how Ferguson operates differently in the HVAC side versus the plumbing side. In plumbing, it's more about the breadth of product availability, logistics, and distribution benefits that give them an advantage over the competition.
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