Don't sell cheaper. Sell with more value.
By Andrea Álvarez *
In an increasingly competitive HVAC-R market in Latin America, loyalty is emerging as the true strategic advantage. With a consumer willing to reward relationship over price, Dealer Programs are gaining ground as a key tool to consolidate sales and build loyalty.
What would happen if tomorrow your competitor offers the same product as you, at the same price or even cheaper?
In an increasingly saturated market, where brands fight penny by penny to win a contract, the real competitive advantage is no longer in discounts. It's in the relationship. In the ability to create solid, lasting and mutually beneficial bonds. In other words: in loyalty.
LATAM Market Context
The HVAC-R market in Latin America reached US$ 13,645 million in 2024, and a compound annual growth of 5.8% is projected between 2025 and 2030, reaching almost US$ 19,147 million for that year.
In parallel, the regional loyalty program market moved approximately US$ 9.7 billion in 2024, with an annual growth rate of between 10% and 13%.
This scenario shows two phenomena: a robust and expanding HVAC market, and a Latin American population accustomed to participating in loyalty programs.
More than US$ 9 billion is circulating today in loyalty programs, which indicates that the Latino consumer already values intangible benefits beyond price.
Global statistics show that loyalty program members spend 62% more and prefer the brand 59% more than non-loyalty program members.
HARDI has been promoting Dealer Programs in the HVAC-R U.S. channel for years, with results such as a 6.8% increase in sales in April 2025, and 7.4% in March, with annual sales exceeding 4%. Empirical evidence that loyalty practices are not only good for the customer, but also for distributors and manufacturers.
In the words of Guitze Messina, Managing Director of HARDI LATAM "Dealers are around 4% of a distributor's customers and represent 60% of its sales on average. The program is key. Only 7% of dealers change brands." Highlighting the importance of adapting these programs in the Latin American market.
Why does this strategy make sense in LATAM?
The Latino customer is already loyal
More than 58% of Latin Americans participate in loyalty programs to receive discounts, and more than 46% to get free products.
Digital opportunities exist
For example, in Brazil, nearly half of consumers want instant and flexible digital incentives. And the digital loyalty management market in the region generated US$ 1,486 million in 2024, with a projection of US$ 2,162 million by 2030.
HVAC is no exception
The sustained growth of the Latin HVAC market reinforces the urgency of adopting a strategic approach beyond price.
How to structure an effective Dealer Program?
Based on models promoted by HARDI and adapted to LATAM:
Key element
Main benefit
Continuous training
Increases the perception of value and improves the quality of service
Dedicated technical support
Build trust and reduce downtime
Incentives for goals
Reinforces the desired behavior and favors closeness
Personalized marketing
It makes the distributor feel part of the brand, not just a sales channel
Recognition and community
Empowerment, sense of belonging and brand evangelism
Challenges and opportunities in LATAM
Challenges:
High informality and little loyalty habit.
Lack of resources to implement comprehensive programs.
Opportunities:
Digital culture on the rise: apps, whatsapp business, networks.
Integration of AI, business models and processes.
Growing professionalization of the channel and willingness to continuous training.
Technology investment available for CRM, platforms, and ROI measurement.
The future of HVAC-R in LATAM will not be won with discount vouchers, but with value propositions that create real relationships. On this path, Dealer Programs represent a solid strategy: they consolidate sales, strengthen reputation and reduce price sensitivity.
Remember: a loyal consumer does not return for the price, they return for the experience, the trust... and for feeling part of, not just as a customer.
Sources:
-Bond Brand Loyalty. (2023). The Loyalty Report 2023.
-Comarch. (2024). Current status of loyalty programs in LATAM.
-HARDI. (2025). Monthly TRENDS Sales Reports. Heating, Air-conditioning & Refrigeration Distributors International.
-Mordor Intelligence. (2024). Latin America Loyalty Programs Market Report.
-SkyQuest Technology. (2024). Latin America HVAC Systems Market Size, Forecast 2024–2030.
-Statista. (2024). Consumer preferences in loyalty programs in Brazil and LATAM.
Written by Andrea Álvarez, Business & Marketing Coach specialized in the HVAC-R industry
