Distro

What do they actually do

Distro builds a live, AI‑assisted sales platform for wholesale distributors in trades like HVAC/R, plumbing, and electrical. The product includes modules for rep chat and product lookups (RepBot), RFQ/PDF parsing with ERP‑synced quotes (AutoBid), plan takeoffs that produce material lists (TakeOffs), technical multi‑step quoting (QuoteTech), and an embeddable customer chat for e‑commerce (CustomerBot) distro.app, YC S24 listing.

In a typical workflow, a counter or inside sales rep uses RepBot to find specs, cross‑references, and substitutions, then drops RFQs or bid lists into AutoBid to generate priced, availability‑aware quotes directly from the distributor’s ERP. For project work, TakeOffs converts drawings/specs into structured BOMs that can be priced with QuoteTech and turned into ERP‑synced quotes; CustomerBot answers routine buyer questions online to reduce support volume distro.app product pages.

They focus on augmenting existing distributor systems rather than replacing them—Distro is not a CRM, ERP, or marketplace. Near‑term, they’re deepening ERP integrations, expanding automation across sales touchpoints, and productizing more vertical‑specific quoting flows (e.g., commercial HVAC/refrigeration) distro.app, YC company page.

Who are their target customer(s)

• Counter / inside sales reps at distributor branches: They spend time hunting for specs, replacements, accessories, and customer‑specific pricing in the ERP, which slows service and frustrates contractors. Distro surfaces specs, cross‑references, and ERP‑driven pricing in one workflow distro.app.
• Estimators and commercial‑quoting teams: They must turn drawings and long RFQs into accurate, margin‑safe multi‑line quotes with complex product rules. Distro’s TakeOffs and QuoteTech aim to automate takeoffs and technical quoting distro.app.
• Outside / territory sales reps: On the road, they struggle to get reliable substitutions, specs, and local availability with consistent ERP pricing, leading to delays or missed sales. Distro emphasizes rep chat and mobile‑friendly workflows distro.app.
• E‑commerce and support teams: They field repetitive questions on fit, price, availability, and order status, creating heavy support load. CustomerBot is intended to answer these automatically and deflect tickets distro.app.
• Operations / IT / branch managers at mid‑market distributors: They worry about tools that break pricing rules, require long ERP projects, or fragment workflows. Distro stresses ERP‑synced quotes and lower‑friction rollouts to mitigate these risks distro.app.

How would they acquire their first 10, 50, and 100 customers

• First 10: Run paid, single‑branch pilots via YC intros and existing industry contacts; embed with each site to configure ERP sync, validate RepBot/AutoBid/TakeOffs, capture KPIs, and turn wins into testimonials and referrals.
• First 50: Package pilots into a repeatable “branch pack” offer and one‑page onboarding checklist; use case studies and referrals to land nearby branches and similar distributors while recruiting a few ERP integrators, manufacturer reps, and associations as introducers.
• First 100: Standardize onboarding (templates, pre‑built ERP mappings, remote playbooks), launch a formal partner program, and add inside sales and CS to drive multi‑branch rollouts, supported by vertical case studies and targeted event presence.

What is the rough total addressable market

Top-down context:

Near‑term TAM is the U.S. mid‑market HVAC/R, plumbing, and electrical distribution segments, measured best by branch locations × expected annual spend for AI‑assisted quoting and takeoffs. This likely lands in the hundreds of millions per year once branch‑level adoption is established.

Bottom-up calculation:

Illustrative example: 3,000 / 8,000 / 15,000 target branches × $6k / $20k / $50k ARPU = ~$18M / $160M / $750M per year. Replace branch counts with verified industry totals and ARPU with pilot pricing to produce a defensible TAM.

Assumptions:

• Branch is the purchasing unit for counter/inside‑sales tools (vs. company‑level buy).
• ARPU reflects seat bundles + modules (RepBot/AutoBid/TakeOffs/QuoteTech) and light services.
• Focus is U.S. mid‑market distributors in HVAC/R, plumbing, electrical for the initial scope.

Who are some of their notable competitors

• Epicor CPQ (formerly KBMax): Rules‑based CPQ used by distributors and manufacturers to build complex quotes that sync with ERPs. Overlaps on technical quoting and pricing control, but typically requires heavier upfront configuration than Distro’s AI‑first workflows.
• Vendavo: Price‑management and margin optimization platform that enforces pricing, discounts, and deal guidance. Overlaps on margin protection and ERP‑driven pricing, but focuses on price science vs. RFQ parsing or AI takeoffs.
• AutoQuotes (AQ): Industry catalog and quoting tool used to pull manufacturer content and price lists into proposals. Overlaps on product lookups/specs; AQ is catalog‑centric while Distro layers AI chat, RFQ automation, and ERP sync.
• STACK (takeoff and estimating): Cloud takeoff and estimating software used by contractors/estimators to convert drawings into material lists and estimates. Competes with TakeOffs, but STACK targets contractor workflows rather than embedding in distributor ERP quoting.
• Autodesk Construction Cloud / Autodesk Takeoff: Digital takeoff and BIM‑adjacent tools for extracting quantities from plans/models. Strong for construction workflows; less focused on distributor‑centric, ERP‑synced quoting.