Survey Finds Relationships and Service Top Priorities for HVACR and Plumbing Distributors

Phocas Software published The State of Sales in Distribution 2026 based on a survey of more than 100 wholesale distributors. HVACR and plumbing distributors made up 19% of respondents. The survey asked about customer priorities, sales channels, AI adoption, and which sales metrics distributors track.

Customer priorities in HVACR and plumbing

How this compares across distribution sectors

The report highlights differences by vertical. For example, 40% of electrical equipment distributors said fast turnaround is the top customer priority. Consumer goods distributors were the only vertical where best pricing led, with 50% naming price above other priorities.

Sales channels and salesperson attributes

Distribution sales remain highly personal. More than half (55%) of all distributors called field or outside sales the most effective channel, while only 5% pointed to e-commerce. Three-quarters of respondents (75%) ranked strong product and usage knowledge among the most important attributes for effective sales representatives.

AI use is moving toward the mainstream in distribution sales. Overall, 49% of surveyed distributors reported using AI for selling, 29% said they plan to use AI within the next six months, and 22% said they have no plans for AI. Among current AI adopters, 40% said that greater collaboration across the business is the capability that would most improve sales performance.

Gaps in measuring sales performance

Despite rising AI use, many distributors do not consistently measure core sales performance metrics. Key findings:

• 39% do not track sales forecasting accuracy.
• 34% do not measure the new-business win rate.
• 32% do not measure the existing-account win rate.
• 27% do not measure customer retention.

The report also found a correlation between strategic focus and measurement discipline. Distributors prioritizing new-customer growth were more likely to track new-business win rate: 87% of those prioritizing new customers tracked that metric, compared with 46% of distributors focused on expanding existing accounts.

Practical implications for distributors and contractors

• Relationship-driven customers: HVACR and plumbing distributors should align sales emphasis and training toward in-person relationship building and product expertise rather than competing primarily on price.
• Use of AI needs process fit: With nearly half already using AI and many more planning adoption, focus on AI features that improve cross-team collaboration and give reps fast, SKU-level product and performance data.
• Fix the measurement gaps: Consistent tracking of forecasting accuracy, win rates, and retention enables clearer decision-making, particularly for teams pursuing new-customer growth.

For HVACR and plumbing distribution, service and relationships out-rank price as customer priorities. AI adoption is expanding, but many distributors still lack consistent sales measurement practices. Field sales and deep product knowledge continue to be the most effective levers for selling in this market.