The chicken little effect--or, don't worry, it's not their money.(Wheeler on HVACR)

I always enjoy reading Jim Olsztynski's editorial column, and his June 2004 piece titled, "Serfdom Vs. the High Road" (page 76) offered readers some sage advice: Don't worry about large home builders buying direct.

Like Jim, I've been there too as a younger, less experienced reporter (you see this on the local and national news all the time), predicting the imminent fall of the sky for our industry. Let's see, there were the franchises that were supposed to take over the HVACR contracting business and buy their parts direct; then the public utilities that were buying up contractors who were going to buy direct; then the huge chains that were buying up all your competitors who would cut prices and drive you out of business; then the builder supply chains that were going to take away all your business; and then ... and then...

Oh sure, you can always write a story about some local company that is poorly managed and crying about what the new competition is doing to them. After all, we need interesting stories to report, and who wants to be the last to recognize a major industry trend? So, we tend to be a bit quick on the draw--initially. But, after a few years, we see things differently--thus Jim's column and his sage advice.

Look at history. The franchises are mostly gone. The utilities are backing out of the business, and few ever really bought direct, because they found that providing local supply costs them as much or more than buying from you. Yes, you serve a valuable and irreplaceable niche in the industry--appreciate that.

Why don't the fads succeed? After all, they are great ideas, aren't they? Yes, they are, but greed is too often the driving force behind these great schemes, and selling stock in a new company is usually the first indication that something is wrong, Have you ever talked to anyone who was planning to take his or her company "public?" I have. What I've heard is, "We ...