Retail Observer

RETAILOBSERVER.COM MARCH 2022 58 T he AVB/BrandSource buying organization, together with its regional chapters and the vendor community, raised funds to assist charity partner Together We Rise (TWR) during the group's annual Leadership Conference in Scottsdale, AZ. TWR aids foster kids through a range of initiatives designed to help put them on the right path in life. With more than a half-million children in foster care in the U.S., AVB's years-long support for the charity has helped make an impact at a critical time of need. The fundraiser took the form of a "Build and Race a Milk Carton Boat" contest, with teams from each BrandSource region constructing a custom boat from milk cartons, tape, wire, and a few odd pieces of wood. A limited selection of tools (some communal) were provided, and participants were allowed 30 minutes to complete the task. Boat designs took on creative shapes and sizes – some were less seaworthy than others and capsized in the hotel's pool before the race started. Each heat featured two regions pitted against one another, racing from one end of the pool and back. The four fastest times then competed in the finals, which featured plenty of high- seas hijinks and maritime mayhem, culminating in the team from the Mid-America Region capturing First Place honors. Team Mid-America had the added benefit of an 11-year-old "ringer" named Alex White (son of AVB's CMO John White), who was auctioned off pre-race as a bonus teammate to the highest- bidding region. The Mid-Americans, sponsored by Whirlpool, won the bidding war for the sailing services of the junior Mr. White. Besides the team-building charity race, the Conference, held at Scottsdale's The Scott Resort, gave representatives from each of the group's 14 regions a chance to meet with key vendors, service providers and AVB leadership teams. Also at the Leadership Conference, there was big news from BrandSource Financial (BSF), the buying group's in-house inventory finance arm: A significant increase in its annual payouts to participating members. As a member-owned entity (like the group itself), profits from the 12-year-old program are funneled back to dealers in the form of annual cash distributions (ACDs). Payout percentages are calculated each year, and BSF General Manager Chris Moore was pleased to announce at the Conference that the rate for the trailing 12 months was increased by 25 percent. Payout is now at half-a- point or 50 basis points, which translates to $500 back for every $100,000 in annual volume financed through BSF. As a result, Moore noted, ACDs now average $6,500 per member, with many dealers receiving disbursements of well over $25,000. "Members were very excited to hear the news and are still talking about it," Moore said. She noted that checks were sent to participating dealers in February, and BSF is forecasting the same payout for this year – which is double the value of other financing companies in the industry. The benefit was confirmed by BrandSource member Mike Heintz of University Electric Home Appliance Center. "I would say that I get at least twice the payout with BSF than with the other two [competitors] combined," he said. "It is a no-brainer to at least switch a brand or two over to your member-owned finance company." Ron Bemis, principal of Bemis Appliance, concurred. "As a member-owned group, it just makes sense to use BSF. We own it, and the more successful BSF is, the more money it puts in our pockets," he said. B U Y I N G G R O U P N E W S AVB FOSTERS AID TO KIDS, BIG NEWS FROM BRANDSOURCE FINANCIAL Andy Kriege is General Manager of Communications for AVB/BrandSource, the nation's leading merchandising and marketing co-op for independent appliance, home furnishings and consumer tech dealers. RO

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