In the face of new types of competitors (e.g., Amazon Supply), PHCP and HVAC supply distributors should stop the habitual practice of liquidating slow-moving and “dead” inventory into cash.
Instead, try to develop a long-term plan to cost-effectively market the potentially profitable products. Distributors who do not want to develop such a plan need to be aware that the traditional definition of slow-moving and dead stock (“velocity”) is not accurate. It can result in discarding products that are profitable and can make the distributorship more appealing to customers.