Unleash Your Competitive Advantage

What is the Value of DSRs in HVAC?

In the rapidly changing world of HVAC business, the catchphrase "play to win" resonates deeply with distributors striving to remain competitive, achieve success, and continue to outplay their competition. For this to happen, a distributor must find a way to separate itself from all the others. One strategic approach that stands out as a game-changer is the role of a Distributor Service Representatives (DSRs).

Why are DSRs of such high value to HVAC distributors?

DSRs maintain excellent product knowledge and make sure quality goods are received, all while establishing and maintaining networks with suppliers, vendors, and dealers. At Allied Air, DSRs are the link between distributors and dealers, providing a bridge of expertise that significantly impacts the bottom line. By drawing on extensive data and insights, we will explore how DSRs are redefining competitive advantage and helping distributors to "blow away" their competition.

As we look deeper into this strategic powerhouse, it becomes evident that the impact of DSRs extends far beyond technical support expertise. Research proves that distributors who use DSRs as pure DSRs separates distributors in the eyes of dealers putting DSRs as the driving force that redefines competitive advantage and drives millions of dollars in sales and savings each year. In the next few paragraphs, we’ll recap what the data and research unveiled during the summer internship project, defining the value both quantitative and qualitative of the DSR.

From technical experts to salesmanship excellence

DSRs are well known for their technical knowledge, but their impact on the company reaches much further. In addition to supporting dealers with technical know-how, DSRs also play a pivotal role in driving sales. Knowing the ins and outs of the product line along with helping train distributors and dealers on every aspect of the product, helps everyone within the channel with improved sales. Bringing their professional insights into Allied Air's product line helps fuel sales growth and elevate the brand's presence in the market. The DSRs at Allied Air drive an astonishing 9.5-11% of annual sales, which is a testament to their importance and the benefits of their dual role as technical experts and sales catalysts.

$20,000 average sales a level 3 and 4 DSR is accountable for driving each week

Unveiling the power of growth rate: A data-driven triumph

In the dynamic landscape of the HVAC sales channel, where measurable success is the ultimate goal, the growth rate of the DSR program emerges as a remarkable driver. The data reveals that distributors with two or more Level 3 and/or 4 DSRs accomplished an impressive average growth rate of 13% compared to distributors who did not have a level 3 and/or 4 DSR. Distributors lacking any Level 3 or 4 DSRs struggled with a -7% average growth rate. The trend remains consistent: 1 or fewer Level 3 and/or 4 DSRs correlates with a 5% average growth rate, while DSRs with a level of 2 or 1 achieved a modest 3% average growth rate. Some distributors with a level 3 or 4 captured an 18% average growth rate. This data reveals the symbiotic relationship between a distributor’s investment for their DSR to level up in the program with a distributor’s exponential growth, underscoring the essential commitment required from both Allied Air and distributors to pursue and promote this invaluable program.

Realizing there is significant cost savings

While many companies wrestle with the challenges of establishing a true technical training program, Allied Air's view of DSRs stands out because they are cost-saving heroes. A DSR bridges the gap between the OEM’s knowledge and hands-on application capabilities by providing routine frequent technical training sessions and making onsite visits with dealers. This results in a significant reduction in the need for distributors to bring dealers to the OEM for ongoing product training and places your DSR as the local technical expert dealers expect from their distributor. Having a DSR focused on training and jobsite visits leads to a tangible boost in dealer’s profitability.  

These professionals stand as a cost-effective solution, whether it be because of every phone call answered, problems solved by troubleshooting, or by navigating the intricate landscape of warranty claims, their ability to resolve issues efficiently and ensuring that distributors and dealers have the knowledge and guidance necessary to resolve field technical situations demonstrates their significance and makes their value tangible. This availability of DSRs translates to real savings for the company and significantly contributes to its indispensable role as a competitive advantage. 

Continuing growth and stability: elevating all stakeholders

The DSR program isn't just about numbers; it's a symphony of mutual progress. Distributors experience heightened efficiency, empowered by the DSRs' technical prowess which in turn fuels customer loyalty and growth. As distributors streamline DSR’s operations and innovation flourishes, dealers gain the rewards of a fortified brand well-supported locally, and of the highest stability. Dealers develop a trusted partnership with DSRs, leading to increased sales and increased customer satisfaction, which fosters a cycle of success. This program isn't just a line item, it's a channel for collective advancement, epitomizing the essence of "play to win." With distributors dedicating DSRs to level up and dealers focused on running their business instead of troubleshooting OEM’s designs, the DSR program intertwines success for all, creating a balanced collaboration that fuels perpetual growth and unwavering stability.

67% of dealers will not buy from a distributor without local technical training and support.