The story of Bluon is the tale of how a chemical company blended a new refrigerant, and then later evolved into a large, brand-agnostic online community that helps technicians do their job.
Currently, Bluon is on the verge of monetizing its platform, linking e-commerce into its vast wellspring of technical information to guide HVAC installers.
Tdx 20 refrigerant blend
Bluon created and received EPA approval for its Tdx 20 refrigerant blend (R-458A) to replace R-22 and provide 20% greater efficiency. The new blend was well accepted in the market, but technicians were a roadblock, faced with a need to retrofit the new formulation into hundreds of thousands of units in the field.
To address the problem, Bluon created a smartphone app providing retrofit instructions for each unit on how to make the transition.
Adding features to the app
XREF allows the identification of appropriate replacement parts that are compatible with a certain HVAC unit
As more technicians started using the app, it took on a life of its own. In response, Bluon added new features and functionality to help technicians every day. Then Bluon acquired the XREF Publishing Company and incorporated the company’s replacement and cross-referenced part information into the platform.
XREF allows the identification of appropriate replacement parts that are compatible with a certain HVAC unit. After the acquisition, Bluon incorporated XREF’s massive database of HVAC 300,000 Models including original parts lists directly into the hands of technicians on its installer app. Additionally, Bluon included the cross reference capability into its overall platform to benefit local distributors who will soon be able to use the valuable data when answering order requests coming into Bluon Member technicians on the installer app.
BluonLive
Recently, Bluon completed its Series B with $37 million in financing, which is enabling them to develop an e-commerce platform (BluonLive), the final link that makes the app even more valuable to HVAC installers. (The refrigerant business still provides $12-15 million in annual revenue.) “We are the only global platform that has gotten self-adopted at scale by technicians,” says Bluon CEO Peter Capuciati.
The app currently has 104,000 members, roughly 30% of the 320,000 technicians in the United States, who had previously tended not to use mobile apps. Capuciati says Bluon built the app in a user-friendly, “likable” way, which explains the large audience of “sticky” users. It also provides a high level of technical support for the industry.
Launch of the app
The app will transform how technicians buy parts and equipment for a job site
“We woke up one day and had this large community of HVAC technicians,” adds Capuciati. “So how do you monetize it without adding costs for the technician?” When the e-commerce platform launches in May or June 2022, the app will transform how technicians buy parts and equipment for a job site.
Historically, technicians often didn’t know what they needed to buy until they visited a local distributor, which had the required information about which replacement parts are suitable, cross-reference by part number with the various alternatives. Now that information is part of the Bluon platform to benefit the HVAC technician in the field.
Distributors Working on the app
Distributors who join the Bluon Network get access to what Bluon is calling BluonLive – a portal allowing them receive order requests generated from technicians in the field using the Bluon app. BluonLive covers both “direct replacement” parts, typically the same part but white-labeled by another company; and “substantial replacements,” which may need a different wiring harness, be positioned differently, etc. Notes about how substantial replacements can be made compatible are included for the distributor to see.
“We help the industry across the board,” says Capuciati. “The techs on our platform get more work done; they are more productive.” More efficient technicians can help offset the shortage of technicians in the U.S. market.
Less training required
Distributors with BluonLive will inform the technicians exactly what part he or she needs at what cost
Each year, an estimated two technicians retire from the workforce for every recruit to the industry. The app can also provide information to help guide less experienced technicians and lessen the need for training.
Now the process of choosing the right part can be a true e-commerce experience. Distributors with BluonLive will inform the technicians with the Bluon mobile app exactly what part he or she needs at what cost. They can buy the part on the app directly from their local distributor.
Convenience
The local distributor still gets the business, and the technician gets the added convenience. The app can also help wholesalers, who have a shortage of counter staff and face the imminent retirement of many employees who have the most instinct and product knowledge.
The expression is that “behind every great tech is great counter staffs.” Bluon effectively scales this expression and allows the required institutional knowledge to flow to any technician’s fingertips.
Brick-and-mortar distribution
Bluon expects to launch their e-commerce platform this June, with up to 2,000 stores of the roughly 6,000 brick-and-mortar distribution facilities in the United States initially signed up. In this way, they will enable and enhance the supply chain at the local level, connect techs to local distributors, and keep the local wholesaler central to the HVAC industry.
And to monetize the app, Bluon will collect a small fee from the distributor for each transaction that happens between the local technician using the app and the local distributor.