Nationwide Gives Indy Dealers Competitive Edge
Given the pressure independent CE dealers face today, Nationwide Marketing has launched several incentives - core model allowance and volume buying programs, and a cash incentive program with DirectTV - to help them compete more effectively against the national chains.
The buying group also brought on Panasonic's line of plasma displays.
Nationwide's electronics group has been working since the fall with its major TV vendors to establish exclusive display and core model allowance program, which recently launched, said Mike Decker, Nationwide's executive vice president of electronics marketing.
Through the program, dealers receive a purchase allowance of between $25 to $100 dollars for "important" or "high velocity" TV models, Decker explained.
"That's very important because it's a model that the national accounts are on, it's a model the mass merchants are on, and it's a model that the clubs could be on," Decker said. "It gives our member a better position to compete because of a reduction in his invoice price. The purpose of core model allowance is to increase the (dealer's) gross margin percent."
Dealers, in turn, are expected to put more attention on merchandising and selling the particular lines. The deal is a result of close negotiations between Decker and the vendors to deliver a program that increases an independent dealer's competitive edge against the big-box stores.
Through the volume program, which Sharp and Toshiba have already made offers to participate in, vendors receive a single purchase order for a large-volume buy of TVs, DVD players, or other electronics, at a "significantly reduced and aggressive price" that Nationwide dealers can market and sell around the key holidays: Memorial Day, Labor Day, Father's Day, Black Friday, Christmas and the Super Bowl, Decker said.
"The numbers have to be right, the numbers have to be deep, and it has to be something in my heart that I know is better than any national account price, so our members can go out there and be really aggressive in their advertising," he said.