Orgill’s hot takes on air conditioners
As Orgill merchants explain, the art and science of the highly competitive air conditioning category begins under the heavy blanket of winter. That’s when air conditioners land in Orgill distribution centers, after replenishment teams work out industry trends and new models with key vendors.
“Thankfully, we have been able to avoid factory and container problems for the last two seasons,” said Alex Burcham, Orgill’s senior category manager.
While weather conditions of Orgill customers vary dramatically across the continent, the bulk of the air conditioners and fans don’t begin shipping until May or June. Regardless of geography, a fundamental retail rule is to be in stock.
“So much of our cooling business is an immediate need to purchase to replace an existing unit that has failed so if a store wants to take advantage of these sales, they have to have them in stock,” Burcham said. “If not, a customer is likely to go to someone else who has them.”
Across Orgill nation, one of the biggest movers continues to be the 5,000 BTU window models for supplemental cooling or for apartment use, great options for an easy stack out in the store, said Todd Wooldridge, Orgill’s Merchandise Manager. Earlier this year In Orlando, the introduction of more upsell U-Shaped air conditioners from Heat Controller gained a lot attention, he said.
The visibility of the product plays an important marketing role, according to Orgill merchants: “Even if they do not move them immediately, customers should see them available and remember when the time comes,” Wooldridge said.
The timing of warm summer days, following fast upon the grilling and chilling of spring, requires merchandising skill.
“A lot of dealers invest their stack out space in grills and patio furniture but those are more likely to be planned or shopped purchases,” Wooldridge said. “When it turns hot and the old unit fails, you want an air conditioner right away so it is a more urgent buy that either you or your competition is going to get.”
Orgill says it plants the seeds for cooling-products sales with pre-season programs that prepare for the hot weather. For instance, A Spring Buying Event showcases DoorBuster promotions and also Last Chance deals.
The distributor serves a variety of customers, including smaller stores that don’t have the space in the front of the store or the back room for bulky pre-season cooling inventory — especially with they are set up for bagged goods and garden supplies earlier in the spring. Orgill’s Last Chance or Just-In-Time promotions are designed to help those retailers, as well as northern stores where hot weather comes later in the calendar.
“It can be a very fine line to walk with space allocation so stores have to plan carefully to move through their garden goods in March and April then immediately reposition that space for air conditioners and fans,” said Burcham. “The Last Chance deal helped some of those dealers fill out their stock for the season.”
Among the trends in the category, according to Heath Kennedy, Orgill’s director of hardlines merchandise, is the rise of the DIY-oriented mini-split air conditioner.
“The mini-split category has been growing in popularity but most models were not DIY friendly and held back adoption,” said Kennedy. “These have usually required a HVAC technician to install them because they need to be charged with refrigerant after installation. The new DIY models can be installed by a homeowner without the worry of having to charge the refrigerant after installation. This cuts one of the big barriers to entry into the category.”
A training module through Orgill’s Vendor Instructional Platform is focused on the trend. And the DIY models (supplied by Heat Controller and branded as Coast Air) have already doubled the unit sales of what Orgill did last year on the installer models—“and the season has barely started,” Burcham added.
In the end, success belongs to those who plan ahead.
“Our most successful seasonal dealers are those that plan for their inventory well ahead of the start of warm weather and do not follow temperatures week to week waiting for things to warm up,” Burcham said.
