The Power of Community

The saying goes that there is strength in numbers. Wholesale distributors know the buying-power advantages of buying group membership. To gain a competitive edge, many buying groups have expanded their membership benefits and toolkit to guide members on a path of growth and resilience.

In our annual buying group spotlight, we reached out to AD, IMARK and The Commonwealth Group to hear more about their communities. In addition, we spotlight a member company from each — to talk about their participation in the group and what member benefits that have used.

Here is what they had to say.

The IMARK Group is a multivertical, member-owned and -governed group of independent distributors consisting of three industry verticals: IMARK Electrical, IMARK Plumbing (luxury products, irrigation, waterworks and PVF) and BLUE HAWK (HVACR), an owner of IMARK Group. Working together, these groups make their individual member-owners stronger by offering better programs and access to better cost-saving initiatives than they could achieve on their own.

Membership statistics provided (as of Dec. 31, 2022) include the following:

1. Plumbing: 650 members with 1,360 locations
2. Decorative Showrooms: 150 members with 427 locations
3. Irrigation: 56 members with 170 locations
4. PVF: 80 members with 235 locations
5. Waterworks: 40 members with 140 locations

At the helm of IMARK Plumbing is President John Aykroyd, who spotlights IMARK Plumbing’s member benefits and strengths, and how the group’s “passionately progressive culture” drives its mission.

Ruth Mitchell: John, what are three member benefits/tools unique to IMARK?

John Aykroyd:: The IMARK GainShare joint marketing/planning program offers members the opportunity to set purchase objectives with a select group of supplier partners. Members are encouraged to conduct joint sales and marketing activities with local sales reps to drive sales growth, gain market share, and increase sales and profits for both members and suppliers. Members and suppliers that partner through GainShare consistently outperform the general market.

Data is power, and the IMARK DASHBOARD offers numerous data points that benefit members and suppliers. Members have access to in-depth analytical tools to help them better manage their experience with the group and provide guidance on maximizing their total rebate earnings through the group’s supplier partners. For our supplier partners, the IMARK DASHBOARD provides multiple sales tools to aid their sales efforts and to help them better manage their overall relationship with the IMARK Membership. Suppliers also gain insight into new business opportunities to grow sales and gain market share with IMARK members.

Our passionately progressive culture has driven the group to expand beyond the traditional role of a buying group. For example, with the synergy and scale of IMARK Group’s (plumbing, electrical and HVAC) 1,600 wholesalers with more than 6,500 locations, we developed a Health Insurance Captive Plan. Like all businesses in the United States, IMARK group members are confronted with annual increases in the costs of providing high-quality health insurance to their employees.

IMARK Group members can now join our captive insurance plan and expect savings on health insurance premiums while offering their employees comprehensive health-care plans that are on par with health coverage provided by Fortune 500 companies.

RM: Tell us about a new program or member tool/service that has been implemented within the past year.

JA:: We recently established an IMARK Group Retirement Plan, a multiple employer retirement (MEP) plan. MEPs allow multiple businesses to join one retirement plan and operate it as a single entity, rather than each business operating a separate retirement plan. MEPs offer cost savings and improved services by providing efficient administration of common back-office tasks. Also, by leveraging scale and purchasing power in negotiations with service providers, the IMARK Group Retirement Plan drives costs down for all participating members.

RM: What strategic goal and new initiatives will the group focus on in 2023?

JA::随着工业的不断增加的速度欺诈solidation, promoting IMARK Growing Forward is a priority initiative. IMARK Growing Forward is designed to maintain and grow the group’s purchasing power by alerting member companies of fellow IMARK Group members in acquisition mode. While family considerations are of principal importance during the company sales process, many member-owners of independent distributors often feel that the best thing they can do for their employees and customers is to so sell their companies to fellow independent distributors.

This initiative has resulted in far more member companies selling to IMARK peers and has kept that purchase volume inside our organization.

We will also be focusing on ecommerce and marketplace initiatives to help our members compete not only with our traditional channel, but also with upcoming competition from outside our channel. Plumbing, electrical and HVACR systems are coming together through technological advances, and purchasers of these systems will look to distributors who can effectively combine those products, reducing procurement costs. Our platform will enable members to work together where appropriate and increase their efficiency in the ecommerce space.

RM: For a company on the sideline that is not a member, what would you say to them, or ask them, to encourage them to contact your group for more information?

JA:: IMARK is much more than just a buying group; we are a family community working together to build success. We offer innovative marketing resources, business coaching, multiple training platforms, social media support and proprietary process improvement ideas at no additional cost to all members. We reward our members for their alliance with our supplier partners and recognize them in ways no other group does.

The best part of IMARK Plumbing is the members’ humility and willingness to share. Just as theirs is a family business, we feel and treat one another like a family; you won’t find better networking and sharing anywhere in the industry.

Family-owned and -operated in Sioux Center, Iowa, Plumbing and Heating Wholesale was founded in September 1979 with the intent of offering the local plumbing and heating market access to the materials needed to conduct daily work without the costly and time-consuming commute previously required to procure said products. Almost 45 years later, Plumbing and Heating Wholesale has grown to include nine counter locations, one showroom location and 92 employees, all of whom work to serve portions of northwest Iowa, South Dakota, northern Nebraska, eastern Wyoming and southwest Minnesota.

Since fully acquiring the business two years ago, CEO Mike Plasier, who currently serves as chairman of the IMARK Plumbing board of directors, has had three key leadership members invest in the business. These individuals — CFO Stacy Koele, Vice President of Sales Adam Kaskie and Director of Operations Benn Harms — make up a team of highly involved and experienced industry personnel who have helped to transform and expand the business.

Plasier outlines a challenge/situation in which an IMARK member benefit/tool in the toolkit helped the company along its path.

RM: What challenge, situation or need did Plumbing and Heating Wholesale encounter that IMARK was able to help with?

Mike Plasier:: COVID-19 and related events aside, networking with fellow members and suppliers throughout the year to discuss purchasing opportunities, business best practices and sales strategy can, at times, prove to be quite challenging. Having consistent communication with manufacturers, peers and associations gives our business and all who work in our industry a chance to set attainable business goals, develop strong relationships within our working communities and practice healthy purchasing habits. With the line communication to the parties previously mentioned, accomplishing priorities is more attainable because of the relationships we have created with key vendor personnel.

RM: What member product/tool/program was able to assist, how did it solve the problem and how long did it take to implement?

议员:作为IMARK的一员,我们的组织可以routinely communicate with fellow members and suppliers, discussing buying schedules, industry trends, best practices and so on. In-person meetings, which have picked back up following previous COVID-related travel restrictions, are the cornerstone of facilitating these conversations. The scheduled one-on-one meeting opportunities with suppliers, I-Net networking meetings with fellow members, social events and educational sessions from industry organizations all play a major role in facilitating communication and healthy business habits throughout the year.

These in-person meetings, and the ability to network with my peers, are part of what sparked my passion for our industry. Small- to medium-sized distributors, such as PHW, have an incredible support system through the IMARK staff, fellow members and suppliers. The connections and resources we make and have access to pay dividends many times over.

Leaving an IMARK meeting, you feel excited about the future and are equipped with the conversations and resources needed to take on the year. Through IMARK, in-person conversations with suppliers and fellow members are facilitated, giving myself and our team the opportunity to routinely connect with leading industry personnel throughout the year.

RM: What were the results?

MP:: As a result of the line of communication facilitated by IMARK, through offered resources and in-person meetings, our business continues to grow and provide impactful service and quality products. Our relationship through IMARK also gives access to key industry organizations, such as the American Supply Association, who offer invaluable benchmarking data and training resources.

Plumbing and Heating Wholesale runs on EOS, The Entrepreneurial Operating System. This is a result of being active in the organization and learning from our peers. Without this, we would have never found this opportunity. The more you put into IMARK, the more you will get back. Our company is a testament to that.

Looking toward 2023, I see myself, my organization and all IMARK members continuing to greatly benefit from the networking, training and technology resources available to us through IMARK.

Formed in 2020 by combining two former buying groups, The Commonwealth Group (TCG) is a board- and committee-driven group committed to working toward collective goals and initiatives to ensure each individual owner’s success. Covering the plumbing, PVF, HVAC, waterworks and irrigation industries, TCG membership includes 113 independent wholesale distributors with more than 1,600 branches across the United States.

RM: Mike, what are three member benefits/tools unique to TCG?

Mike Lepley:: First and foremost, TCG’s cohesiveness. With 113 members involved in plumbing, HVAC and waterworks/irrigation, that truly support TCG’s vendor partners, member service providers and the TCG office initiatives is a major strength of our group.

TCG has the ability to help influence additional earnings because we have substantial purchasing volume and a manageable wholesale network, all pulling in the same direction. The TCG approach to customer service and staff responsiveness differentiates this group from the others. Members who have made the switch from other groups, as well as countless manufacturers and member service providers, consistently communicate and compliment this obvious difference.

Second, our cash flow model is second to none. Our programs, terms, etc., are 100-percent transparent and returned to the member. This can be easily tracked, and the financial return to our members simply cannot be matched.

And the third differentiator is TCG’s EDI success in streamlining processes and gathering important data for both the individual TCG wholesaler and the TCG office. The Commonwealth Group, which operates with only seven employees, runs the most efficient buying group in the industry. This can be attributed to our efficient use of technology, as well as the many members who volunteer to serve on the TCG board and committees. The most significant benefit to the member-owner is that more of their earnings go back to where they belong — into their respective companies.

RM: Tell us about a new program or member tool/service that has been implemented within the past year.

ML:: Through our EDI partner, LBMX, TCG now offers a rebate analytics feature to our membership. These analytics allow members to track progress toward both group and individual rebate targets in real time, thereby allowing optimal tier attainment.

RM: What strategic goal and new initiatives will the group focus on in 2023?

ML:: 2023 will usher in a new payables system that upgrades the already best-in-class cash-flow model. A major strategic focus for 2023 will be the development of a product information management backbone for our entire membership. TCG will be working in with our vendor partnerships to acquire accurate, up-to-date and standardized product data for our members to feed their ecommerce platforms and inventory systems.

RM: For a company on the sideline that is not a member, what would you say to them, or ask them, to encourage them to contact your group for more information?

ML:: We are a true member-owned group. A wholesaler has to ask the question, “Who controls the money?” TCG is a 100-percent transparent, streamlined, well-organized, member board-governed and committee-driven group that focuses and delivers the financial returns you deserve. We are partnered with world-class manufacturers who work closely with our membership and committees to grow their businesses. The TCG wholesaler receives 100 percent of the rebates from the manufacturer. If these things are important to a wholesaler, then The Commonwealth Group is the answer.

Family-owned and -operated since 1934, Robertson Heating Supply Co. focuses on HVAC and plumbing wholesale distribution with 39 branches, including six kitchen-and-bath retail showrooms, serving Ohio, western Pennsylvania, Michigan, West Virginia and Indiana.

At the helm is President Scott Robertson, a third-generation owner.

RM:从经销商的角度来看,The Commonwealth Group offer that is powerful and unique?

Scott Robertson:: No. 1 is certainly an awesome financial return for the member. The rebates that are negotiated and received by the members are substantially more than any member could get on their own. What is awesome about our buying group is that it is 100-percent member-owned and 100 percent of the rebates flow back to the membership. When you consider the nominal fees to belong to the group, it is a phenomenal return on a wholesaler’s investment.

RM: What other unique and powerful benefits of TCG are there besides the financial?

SR:: First and foremost, it is about terrific networking and best practices opportunities that we have with 112 other wholesale members. The group, which comprises 113 distributor members, is a perfect size. It is enough to have a variety of members by size and geographic location, but yet it is not too many to where there is no way you really can know the bulk of the members.

The networking we do both formally through TCG Net — which is a once a year, five-hour best practices formal session — and informally at the two meetings held per year allows you to make connection with certain members. You can pick up the phone and talk to them throughout the year about a mutual challenge or issue — priceless!

The EDI processing through our buying group and their affiliation with LBMX has provided us with real-time purchasing information regarding purchases by category, trends, rebates by category, and other critical information that we couldn’t get very easily before.

All in all, The Commonwealth Group is one of the most important partnerships we have at Robertson Heating Supply, and I would promote it to any of my fellow distributor members.

AD is the largest contractor and industrial products wholesale buying group in North America with more than 845 independent member-owners spanning 14 divisions in the United States, Mexico and Canada. It covers electrical, industrial, safety, bearings and power transmission, plumbing, PVF, HVAC, decorative brands and building materials. In addition, the group partners with 967 manufacturers and 93 service providers specializing in finance, operations, marketing and information technology.

At the helm is Chairman and CEO Bill Weisberg and President, PHCP Business Unit Jeffrey Beall, who foster the group’s motto: “Together, We Win.”

RM: Gentlemen, what are three member benefits/tools a distributor unique to AD?

比尔·韦斯伯格::首先,利用multivertical for enhanced programs and services. What started with just the PVF division in 1995 with six distributors and nine manufacturers has become our PHCP Business Unit with 196 member-owners and 302 manufacturers spanning four industries. This growth, coupled with the 10 other verticals we have added across all AD, gives strength and increased buying power to each individual member that joins. We leverage this size by adding resources and personnel to support our members and suppliers with opportunities, such as AD eCommerce Solutions, that make each individual company stronger.

Our strength and expertise across multiple industries help members more efficiently expand their business into new verticals, connect with a wide array of top-tier distributors and manufacturers, and use AD services to help them achieve long-term success. As our member businesses and the AD community grow, we are able to explore new industries and value-added programs, all to support the financial growth and viability of independents.

Jeffrey Beall:: Second, networking with the best of the best distributors. As we continue to grow, I never cease to be blown away by the wise and creative members we continuously add to the group. Networking at AD brings leaders from noncompeting member companies together for structured and facilitated sessions to share best practices and provide insights into the state of their industry. The focused networking time they have to collaborate and problem-solve in today’s tricky business climate is a real game-changer to help navigate everyday business challenges.

Our members are so successful because they have access to innovative services to persevere and solve problems together. Networking has been one of the quintessential aspects that draw these companies to join AD, and we are continuing to explore ways to enhance our network experiences in
the future.

BW:: Third, a team of strong, dedicated advocates for you. We have seen unique challenges over the past few years, and having a team to support and advocate for you alleviates stress and strengthens your business. I must say the hard work of the PHCP team cannot go unnoticed. The business unit is headed by Jeffrey Beall, who has been with AD for more than 10 years, and he is surrounded by an incredible leadership team. Justin Dunscomb, president of the U.S. Plumbing and PVF Divisions, is close to 17 years with AD and Randy Lee, vice president of the U.S. HVAC Division, is now closing in on five years.

We’ve also recently added two great leaders to the PHCP Business Unit: Dan Kelly, senior vice president of the Supplier Relations and Decorative Brands Division , and Kyle Cline, director of supplier relations. We promoted Stephanie McAllister to director of member engagement, U.S. Plumbing and HVAC Divisions.

These additions round out a solid, experienced team I would want to go to bat for me. Our programs are driven by strong teams that give the AD community the time and attention they deserve to ensure they are receiving the greatest possible value. The success of the business unit is a true testament to our team’s hard work and commitment to our shared mission to keep the independent business model as strong as ever.

RM: Tell us about a new program or member tool/service that has been implemented within the past year.

BW:: We are excited to be launching The Center for Independent Distributor Leadership (CIDL), which is AD’s holistic education initiative to prepare the next generation of independent distributor leaders with the competencies and experiences to build long-term, sustainable success for their companies. By leveraging the CIDL, AD member companies gain the resources needed to develop and retain top talent through comprehensive leadership programs to fuel business and professional growth.

The CIDL brings together top professors, industry executives and thought leaders along three certification pathways for AD members’ leaders: Leadership Experience, Distributor Sales Leader and Distributor Operations Leader. Additionally, the Distribution Manager Development Program provides an introduction to the financial, operational and sales disciplines covered comprehensively in the three leader certification pathways.

JB:: We are all about partnership and finding ways for our members and suppliers to grow together. A great demonstration of that is our investment in our AD Conversion Campaign. It has always been part of our marketing planning program, but this past year we have worked hard with individual members and suppliers to help facilitate the conversion of business from non-AD to AD suppliers. It is a great way to bring additional business to the group and fulfill the value proposition to AD suppliers.

RM: What strategic goal and new initiatives will the group focus on in 2023?

BW:: Our theme for our PHCP North American Meeting and our entire 2022-2023 meeting season is “What’s Next” — a call for AD members and supplier partners to embrace new ideas and anticipate the future of their companies.

At AD, we are continuously looking at ways to raise the bar for our community, and enhanced member and supplier engagement is among our key focus areas. We are excited to be broadening our cross-divisional networking in 2023, including additional opportunities for peer-to-peer engagement for members.

We are investing more resources in our meetings and network ecosystems, which are already best-in-class in our industry, but we can always improve and provide more value. This year, as mentioned, we are also launching our Center for Independent Distributor Leadership.

RM: For a company on the sideline that is not a member, what would you say to them, or ask them, to encourage them to contact your group for more information?

BW::我将鼓励他们去接触学习more about what being an AD owner/member is all about — even if they think they know. We continuously innovate and hold ourselves to high standards to keep up with our members, who are the best of the best in the industry. AD owner/members and supplier partners work hand-in-hand with us to deliver spectacular results and grow their businesses together. They live out our motto: Together, We Win.

PDI was founded in 1973 by Glad Mealor and Ronald Pratt in Lawrenceville, Ga. The owners, along with Glad’s son Sid Mealor as their first employee, began operations in a 3,000-square-foot warehouse with a focus on counter sales and delivery of plumbing products. The family business was borne out of a passion for identifying and fulfilling the needs of customers while exemplifying first-class service.

Today, as the company approaches its 50th anniversary, PDI continues to be an independent, family-owned business and a prominent wholesale distributor and retailer of kitchen, bath and lighting products in the Southeast.

The company has experienced record growth in the past 30 years, including a recent acquisition that has grown its family of employees to more than 400 and expanded its physical presence to 19 branch locations and 13 showrooms across Georgia, South Carolina and Tennessee.

At the helm is President and CEO Coley Herrin, who outlines how AD has helped the company uphold its tagline of “Rely on Us.”

RM: What challenge, situation or need did PDI encounter that AD was able to help with?

Coley Herrin:: One of our biggest challenges as an organization is “you don’t know what you don’t know.” As we continue to grow, we come across situations for the first time and learning from trial-and-error can be problematic and expensive.

RM: What AD member product/tool/program was able to assist, how did it solve the problem and how long did it take to implement?

CH:: The networking at AD has been so valuable to PDI in facing new challenges. The ability to ask peers, some larger than you, about how they handle situations and being able to learn from them has been extremely beneficial to us.

RM: What were the results?

CH::我们的同伴听我们的意愿challenges and give us advice on handling a new situation provided us with the ability to find a solution and move forward with more confidence and certainty — more so than if we had not had access to such a vast network of seasoned professionals who were willing to help.