Independent retailer members from BrandSource, ProSource, Mega Group, N.E.A.G., and Intercounty gathered the week of March 24, 2024, in Las Vegas, NV for the annual AVB Summit to build and strengthen relationships, engage in top-tier learning, and most of all – discover and implement the best strategies to help them continue to WIN in a market that is returning to pre-pandemic levels once again.
“Winning was easy following the pandemic when homebound consumers rife with stimulus funds helped fuel record sales,” said Jim Ristow, CEO of AVB as he encouraged attendees to switch to a growth mindset during the Summit’s opening session. “Today, however, inventory is back along with promotions, and renewed aggressiveness by box stores is challenging member margins, requiring dealers to get back to the basics and tighten up our companies.”
Along with aggressive pricing from big box stores, independent retailers have a lot to contend with in 2024, and AVB unveiled the group’s latest tools and services during the show to help their members fight back and come out victorious. Innovations revealed included updates and improvements coming to the buying group’s Backroom Portal and the availability for members to migrate from free email addresses and upgrade to professional branded addresses with AVB Inbox.
Additionally, AVB made two major announcements, which included the launch of an in-house credit card processing program, Trusted Transact, that could save dealers hundreds or even thousands of dollars a month in fees. “Trusted Transact offers pre-negotiated rates and removes the middleman by employing a single merchant service provider for all transaction platforms, including HUB, Alta e-commerce sites and in-store terminals,” said John White, Chief Marketing Officer, AVB. “By passing the savings on to BrandSource members, an estimated 75-80% of dealers would likely enjoy significantly lower fees through the service’s cost-plus model.”
The other major announcement was the introduction of the buying group’s new “Business Baton” service, which addresses one of the biggest challenges facing BrandSource members and all independent dealers as they approach retirement – finding a buyer for their businesses.
“The number one reason a member leaves the group is that they’re closing their business,” said Dave Meekings, COO, AVB. “But here’s the kicker: The vast majority of those businesses aren’t failing; in fact, they’re extremely healthy. The owner is simply ready to retire and can’t find a way to pass it along.”
The Business Baton service aims to connect buyers and sellers within the group, with sellers anonymously entering some basic company data points into the portal, while those looking to make a purchase can sign up as a potential buyer. Both are then assigned to a geographic region. The buyer can only see general information about a business, such as product categories, sales volumes and on-hand inventory, and can submit a request for further details if interested. The request is then forwarded to the seller for consideration.
“Linking an interested seller and an interested buyer is a critical initial part in the process of passing the baton to a new generation to manage and grow that business,” added Meekings. “By doing this, AVB can help all members, from those looking to grow their business to those who’ve spent a career building a successful one. It’s truly a win.”
In addition to an Expo floor packed full of vendors and reps from the top appliance, furnishing and service brands, AVB members were able to engage in manufacturer product training and education sessions that served to increase their understanding of timely topics such as AI in retail, hosting a successful showroom event, implementing cybersecurity and how to create a “Wow” customer experience.
Regardless of the challenges that lie ahead, there are plenty of opportunities for independent retailers to take advantage of in 2024 and beyond. “The usual metrics of winning, whether it’s a trophy, a nice house, or a fancy car, aren’t necessarily the best ways to measure winning in life,” Ristow explained. “What may be even more important are the actions a person takes or how they live their lives that allows them to get to those markers.”
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