Private labeling is not suited for everyone.  Some contractors are satisfied with identifying themselves as a “dealer” for a manufacturer.  In fact, if you refer to yourself as a “dealer” rather than a “contractor,” you are probably not well-suited for the private label path.

Contractors who seek to private label should be aggressive, progressive, independent, and have a retailing mindset.  This is the cutting edge of HVAC marketing and sales.

With all that private labeling offers, why don’t more contractors sell their own brand?  Here are some of the reasons contractors hesitate to private label…

·         Can’t find a manufacturer willing to private label – The biggest contractors can get the attention of any manufacturer (almost every manufacturer is private labeling today, even the bluebloods).  To get a manufacturer to even talk with you about private labeling, you need enough volume for the manufacturer to worry more about losing your business than about your brand identity.  If you can’t get a manufacturer’s attention, don’t worry.  This is why the Retail Contractor Coalition was formed.  The Coalition has solved this problem for you.

·         Unsure how to start – If you haven’t private labeled before, you probably don’t know where to begin.  The Retail Contractor Coalition started by talking with contractors who have private labeled in the past.  In the foundation meeting, Coalition members prioritized the list of tasks, resulting in a step-by-step path.

·         Internal resistance – The greatest resistance you are likely to encounter is not from your customers.  It’s from your employees.  Technicians and salespeople have far more brand awareness than consumers.  According to industry research, consumers barely recognize HVAC brands and seldom attach any position to them.  This makes sense.  Manufacturers don’t advertise enough to influence consumers.  Their advertising, whether trade or consumer, is really directed at the channel, at you and your employees.  Since it’s your industry, you pay attention.  Manufacturer advertising is much more influential on you and your employees than on the consumer.  As a result, the Retail Contractor Coalition is preparing a whole series of products to help inform and persuade your company about private labeling.

·         Loss of manufacturer brand identify – When you promote a manufacturer’s brand, you’re really subsidizing the manufacturer.  Do they need your financial help?  And can’t you sell the homeowner any brand you want?  Every sales trainer says people buy the salesperson first and the company second.  If they buy these two, brand doesn’t matter.  Besides, most private label contractors have discovered that consumers prefer the equipment that carries the contractor’s name.  After all, it was specified by the contractor for the local climatic conditions.  Who else can say that?

·         Loss of co-op – Contractors who private label will give up manufacturer co-op.  However, those in the Retail Contractor Coalition receive manufacturer rebates that more than replace co-op because there are no strings, no rules, and no requirements that you use it to subsidize a brand you don’t own.

·         Lack of support – Contractors worry about a reduction in manufacturer business support and guidance.  Those in the Retail Contractor Coalition receive far better business support from other members in the Coalition.  The Coalition’s annual meeting will be the only conference in the industry that’s focused exclusively on private labeling.

·         Cost – Private labeling on your own is expensive.  Not only do you have to source a manufacturer for your logo and pay for the tooling and set up, but you have to create literature, cut sheets, training, advertising, and so on.  The Retail Contractor Coalition provides this as part of the program.  The initial investment is $3,500 for the first year and $2,000 each year after.  You should receive more than this from your rebate.  In other words, a Coalition membership doesn’t cost you, it pays you.