Master distributor solidifies commitment to wholesalers through tough economy
BY MARY JO MARTIN
Editorial director
During the last few years, as this industry has dealt with challenges and repercussions caused by the recession, many wholesalers and manufacturers have reduced inventory as part of their cost-cutting measures. As a result, this has left them vulnerable to losing sales, making a bad situation even worse.
Metropac, however, took a different path. The HVACR master distributor located in Foxboro, Mass., took this opportunity to reaffirm their commitment to wholesaler distributors by adding additional product lines and increasing their inventory of existing product lines. This provides wholesalers the ability to retain the sale without increasing their own inventory. Metropac’s motto is: “Our warehouse is your warehouse.” They will stock the products for you and have them shipped to you, your customer or even directly to a job site.
Metropac began the process by increasing their on-hand quantity of some of their most common items including Honeywell zone valves, thermostats, actuators, combustion products and zoning products, and then went on to expand their inventory of products from Johnson Controls, White Rodgers and Maxitrol. To add even further depth to their inventory, Metropac brought in Danfoss heating, Braeburn and Caleffi as new product lines.
Among Metropac’s major lines are Honeywell, Johnson Controls, White Rodgers, Invensys/Robertshaw, ITT/McDonnell & Miller, Siemens, Schneider/TAC/Erie/Barber-Coleman, Asco, Fireye and Grundfos.
Metropac has roughly 75,000 part numbers set up in their system, and stocks 15,000 SKUs from 50-plus vendors — a number that has grown 50% in the last 10 years. And according to purchasing director Matthew Trelegan, Metropac plans to further increase their number of SKUs in the near future with the addition of several OEM lines such as Reznor, Rheem, York, Teledyne Laars and several others.
“As long as our customers keep requesting new product lines, we’ll keep bringing them in,” said Trelegan. “With our vice president Bryan Cosentino and general manager Tom Trelegan also serving as salesmen answering the phones, it’s pretty easy for our customers to convey their needs.”
Training is a high priority at Metropac, and each member of the sales staff is equipped with the knowledge and tools necessary to quickly meet the needs of wholesalers with product selection, cross referencing, technical support and more. “Our sales staff is not outsourced,” said Cosentino. “When you call Metropac, your call is answered by an in-house salesperson with years of experience in the HVAC industry. While not every call will result in a sale, if we help the customer in some way they will remember that and continue to call us in the future.”
Training is always available to customers as well. In addition to in-house training, Metropac is now conducting on-line webinars. This offers wholesalers around the country an economical way to stay informed about new products. These webinars are free of charge and are usually an hour long. Attendees are given an opportunity to ask technical questions and interact live with trainers from various manufacturers that Metropac carries. To be informed of upcoming webinars, sign up for Metropac’s newsletter at www.metropac.com/newsletter.html.
As a further commitment to customer service, Metropac offers confidential drop shipments, seasonal hours, guarantees same-day shipping of all in-stock items, and offers next day air packages weight 10 pounds or less for a flat rate of $15.00 with a $50.00 minimum order.
Technology as a tool
Metropac believes strongly in the value of technology and uses it as a tool to enhance their relationship with customers. They consistently update and upgrade their management software to stay ahead of the curve. This software allows Metropac to best forecast inventory trends. The company also is constantly improving its warehouse functions to increase speed and accuracy. They currently maintain a 95% order fill rate and an accuracy rate of 98%. And whether your order is faxed in, phoned in or ordered on-line, it’s picked, packed and on the loading dock within 15 minutes.
Metropac’s website serves many functions, not the least of which is to conduct business; in fact almost 50% of the company’s sales are done through on line ordering — a number that continues to grow every year. “Because of the ease and convenience of our on-line ordering system we have been able to increase our sales without adding more customer service or salespeople,” Cosentino remarked, “which helps keep our costs down so we can continue to offer our best prices to our customers.”
With an ID and password, customers can log into the on line ordering system 24/7 to check stock, prices, place orders, view specials and promotions, down load price sheets, cross reference part numbers, check their account, etc. Customers who place their orders on-line receive timely e-mails notifying them of order and shipping confirmations. And as an incentive, extra discounts are passed onto customers who order on-line.
Among the resources offered on Metropac’s website include:
• Product spotlights
• On-line manufacturer catalogs
• Package tracking
• Cross-reference guides
• Warranty tags
• Credit applications
• Training Videos
Over the years, the team at Metropac has witnessed a number of changes throughout the industry. Cosentino commented on some of the key shifts he has seen: “Consolidation of mom-and-pop wholesalers is one of the major changes that has occurred over the last 20 years or so and, as a result of this, some of our older customers are now more resourceful and may not rely on us as much as they did in the past. They may need us for the occasional odd ball part or to cross reference an item, but that’s okay by us — we’re here to help them any way we can.
“We’ve also found that many wholesalers are turning more often to on-line ordering for ease and convenience. They are savvy enough now to expect their suppliers to have an informative and functional presence online. Finally, we’ve seen that both quality and price remain important today — our customers still want to purchase quality products at a competitive price from a company with a solid reputation that will be there to provide the products and support they need to be successful.”
Metropac continues to sell exclusively through HVACR wholesale distributors and OEMs, a tradition they believe is crucial to safeguard their reputation.
“We are committed to our wholesalers and we have stood behind our pledge of ‘wholesalers only’ for decades,” Cosentino explained. “That’s our business model and that’s how it will stay. We firmly believe that master distribution will continue to grow. Wholesalers are relying on master distributors much more often to fill the voids in their inventories — especially in light of current business conditions — and we stand prepared now more than ever to serve them.”
A nod to Metropac’s history
As the effects of the Great Depression were beginning to be felt around the country by families and businesses alike, Metropac founder Bert Cosentino realized there was a growing demand for oil heating equipment parts and service. In 1937 he set up a small parts shop in a garage in Everett, Mass., and called the business Metro Supply Company.
Originally, Cosentino’s mission was to acquire an inventory of hard-to-find aftermarket parts for heating systems by repairing equipment, components and the parts themselves, and by collecting used parts and pieces. Because he understood the wide range of his customers’ needs, Cosentino began offering some assembly and manufacturing. Among the products manufactured by Metro Supply were its unique water/air furnaces, shell-head oil burners and Quiet-Flame water heaters. As the business grew, the garage had to be rebuilt to better house the inventory and to service the many customers.
In the early 1950s, Cosentino decided to give Metro Supply a new and more modern name; hence the launch of Metropac Industries. The company acquired the Tux and Autopulse divisions from Walbro Corp. and produced those lines into the early 1980s. As Metropac’s stock of ever greater inventory from other manufacturers grew, they chose to exit manufacturing and instead concentrate their efforts solely on wholesale distribution.
Today, Metropac Industries has developed a customer base of thousands of wholesalers and OEMs in the U.S. as well as Canada and Puerto Rico. With 50-plus product lines in stock their inventory encompasses all areas of the HVACR market, from residential and commercial controls to draft controls and venting equipment to hydronic and steam specialties.
For additional information, visit www.metropac.com.