Published November 13, 2022
Watsco: SEER Pricing Changes and Gross Margin
inpractise.com/articles/watsco-seer-pricing-changes-and-gross-margin
Executive Bio
Former Territory Manager at Watsco
Interview Transcript
Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.
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Let’s say you had 90 million machines outstanding in the market, what percentage are duct machines, traditional, unitary machines?
I don’t think it’s even 10% here, because even in my house, I have a traditional machine, and I have a Mitsubishi back in what we call our ‘Florida room,’ which is our sunroom, so I’m cooling one room with it. There are many people who have that here. They tell us that because there are so many oil burners being replaced in New England, it’s the hottest market in the country for ductless. Those people want to get rid of the oil burning furnaces they’ve had for years. However, I would say it’s still 10% there, which is why the growth curve gets so strong year after year and continues to be.
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How important is technology? They always talk about it at Watsco with their OnCall Air; how important is that to contractors?
The newer contractors love it. The older guys who have been doing it forever don’t even want to think about it or talk about it. Eventually, we’re going to get there. Contractors love being able to look at their phone and see we have five units in stock, without having to call. You can imagine the number of phone calls it cuts out, with people at the branch having to answer it, to check on things. Technology is good, and the person who loves technology is everyone 35 and under, even 40 these days. When the older guys quit working, it’s going to be even more important.
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