Being part of a larger collective provides strength in numbers, as well as partnerships for growth and success. Such defines a buying group — designed to maximize purchasing power and provide members with multiple tools to strengthen its foundation through marketing opportunities, e-commerce support and other tools to maximize success. 

Each group has its distinct advantages and, over the years, there has been consolidation. We connected with the leaders of The Commonwealth Group, AD, IMARK Plumbing, Blue Hawk and The Delta Group to hear about their mission, membership, offerings and how they help their members succeed. Here is what each had to say.

IMARK Plumbing
[ Tagline ] Building Success
ONE Member at A Time

Leadership:

John Aykroyd, president; Matt Roos, executive vice president; Ted Havel, vice president of marketing and vendor relations; Stephen Perencevich, vice president of membership development; and Jeff MacDowell, executive director of the Luxury Products Group.

On Jan. 1, 2019, the Omni Corporate Services, Equity Plumbing and IMARK Group merged into one — IMARK GROUP, thus becoming the only multi-vertical, member-owned and fully member-controlled marketing group serving the plumbing and electrical industries. The merger also formed the group’s plumbing vertical, IMARK Plumbing. The group has more than 650 members, along with more than 140 vendor partners and 40+ service providers. 

I asked IMARK Plumbing Group President John Aykroyd to discuss what has taken place since the merger, and how it has strengthened/enhanced the group.

John Aykroyd: A lot has happened in a short amount of time! Right out of the gate, we upgraded our ERP system to SAP. This change allowed us to automate the payment of rebates. It now takes 30 days to process rebates where in the past it took more than 70. Secondly, BLUE HAWK joined the group in early May, which brought an additional 200 members into the IMARK Group family. 

Next up was an upgraded website that launched in June of last year, which provides members and vendors mobile access to all rebate programs, vendor contacts, service providers, meeting schedules and finally, yet importantly, rebate reports. The Luxury Product Division had unbelievable growth after the merger, and we brought in new members from Equity and IMARK electrical, as well as a substantial number of members came from outside the wholesale channel.

Ruth Mitchell: Tell us about the strategic goals and new initiatives IMARK Plumbing will focus on in 2020 and beyond.

JA: Our No. 1 priority is member engagement. The explosive growth in membership this year, as well as a strategic reduction in certain vendor categories, has poised us to continue our organic growth cycle by encouraging members to buy from vendors in the group. In 2019, we had certain vendors that were purchased by competitive national distributors and we effectively switch 80 percent of the business to other vendors in the group. 

Engagement also includes participation in company events as well as peer-to-peer networking groups. This allows our members confidential access to other members to share best practices. We became a member-owner of EDT GmbH, Essen, Germany, an international cooperative of plumbing and HVACR distributors in 13 countries, where we share common international suppliers and benefit from a larger base of collective business.

RM: What is your outlook for the group’s sales growth, membership growth and industry consolidation in 2020? 

JA: We are looking for another double-digit growth in 2020. The majority of our members among all three verticals believe 2020 will be better than 2019.  

RM: Tell us about the unique services and tools provided to your members that makes it stand apart from others. 

JA: The opportunity to network and share best practices with IMARK member executives is one of the most popular and valuable aspects of membership. Many member executives say these meetings, held twice annually, are the most important and valuable part of their membership. In these rapidly changing times, the opportunity to discuss common business challenges and opportunities with peers from around the country is invaluable and unique. 

“We believe that there is no substitute for face-to-face communications with fellow IMARK member executives and manufacturers. Not now. Not ever.”

 — John Aykroyd

RM: How does the group foster the strengthening of business relationships throughout the channel? 

JA: We believe that there is no substitute for face-to-face communications with fellow IMARK member executives and manufacturers. Not now. Not ever. Our meetings are designed to deepen and enhance the relationships of IMARK distributors and our supplier partners. One-on-one meetings between member and supplier key decision-makers are invaluable for building profitable relationships and spearheading mutually beneficial business planning that can pay big dividends.

RM: Please describe the offerings from the groups within IMARK, and how they help your members be best in class. 

JA: Each IMARK member is in the best position to determine the nature of the e-commerce solutions required by its current and prospective customers. One size does not fit all. Our e-Branch Webstore development kit was created especially for the members of the group by Second Phase and Trade Service. Elements of the package include fully attributed product SKUs, a one-stop data hub (PIM) used to manage, edit, prioritize and display the data content on your webstore. We also offer Webstore development. 

One of the biggest advantages to the merger has been our scale when talking with our vendors. We are leveraging our P-Card initiative that allows our members to pay vendors within the group, as well as any other cost in their business to vendors that will accept credit cards. We look forward to sharing those successes with BLUE HAWK and IMARK Electrical this year.

RM: What does IMARK Plumbing offer its membership that they cannot find elsewhere?

JA: We provide a family atmosphere for independent distributors, large or small, in the plumbing, HVACR and electrical space. This gives a family business an opportunity to enhance their profitability, marketing programs, e-commerce initiatives, succession planning and networking. 

Keeping purchasing power within the group is vital, and we offer a tool called IMARK First Program — focused on succession. This program allows members to market their businesses to other members, confidentially, before they go to the broader market. This keeps our purchasing power within the group rather than push them to national player. We have retained the services of The Beringer Group, which also helps in transitioning family businesses to the next generation of family members. 

RM: The group promotes a motto/theme of “Progressive. Ethical. Transparent. Dynamic. Nimble. World Class. Family.” How does it support this statement? 

JA: We hit every target date that was set in our business plan for the merger and subsequent integration of business processes. We combined our plumbing shows into one in 2020, which took three years for the electrical side to have a combined meeting. We converted to SAP in 90 days after the announcement of the merger. We have a progressive group of board members who were willing to change the way we operate. 

Our new member monthly reporting and web tools enable our member’s management and purchasing teams to efficiently and effectively maximize the financial benefits of IMARK under a member-owned, member-controlled transparent structure. We truly measure ourselves by building success one member at a time. Whether it is a single house operation that has been in business for five years or a multilocation, third-generation regional distributor, we understand that one size does not fit all. We truly are a family. 

Upcoming Events:

The spring plumbing meeting is scheduled for early February in San Diego. The Vendor Invitational will take place in August. The group intends to develop cross-vertical networking opportunities for members of multiple verticals within IMARK.

Blue Hawk
www.bluehawk.coop
[ Tagline ] Building Success
ONE Member at a Time

Mission and Membership:

BLUE HAWK is a member-owned purchasing cooperative that was founded in 2005 by five independent HVACR wholesalers with 18 locations. In less than 15 years, it has grown to become the largest buying group and/or cooperative in the HVACR industry. The group has 219 member companies with 1,688 member locations and more than 12,000 HVACR professionals. Collectively, the group does more than $8 billion in aggregate sales. It is supported by 137 vendor partners and 54 solution/service providers.

Leadership:

The group has a nine-member elected board of directors who serve three-year terms with a maximum of two consecutive terms without pay. 

Management team: Lance Rantala, chief executive officer; Colleen Leppert, senior vice president of operations; Tony Burks, vice president of business development; Teri Ditsch, vice president of marketing and communications; and Charlene Fetty, revenue manager.

RM: Tell us about the strategic goals and new initiatives the group will focus on in 2020 and beyond. 

Lance Rantala: On May 8, 2019, BLUE HAWK announced it become a founding member-owner of IMARK Group, along with IMARK Electrical and IMARK Plumbing. In 2020, IMARK Group will increase our collective clout, improve market share and put us in a position to better compete against national and global distribution companies. In today’s competitive business climate, economies of scale are paramount for survival. We will be recruiting market-leading buying groups and cooperatives ready to protect independent businesses and become IMARK Group owners.

The group embraces the IMARK tagline of “Building Success ONE Member at a Time.” It reflects why IMARK Group was formed .

RM: Tell us about the unique services and tools provided to your members that make it stand apart from others.

LR: BLUE HAWK has many distinct strategic offerings from a turnkey e-commerce solution to an EDI platform to on-demand e-learning. However, one of the most impactful tools available to our members is our quarterly financial benchmarking platform called Benchmark BLUE. It leverages the power of data to improve efficiencies and assure the success of our members’ businesses. Benchmarking metrics help independent businesses set goals grounded in performance by comparing top-performing BLUE HAWK member peers.

RM: How does the group foster the strengthening of business relationships throughout the channel?

LR: BLUE HAWK’s cooperative model has embraced the complete transparency of rebates and financial statements since day one. This has created an unparalleled co-op culture that is difficult to describe yet easy to measure by our members’ loyalty. 

RM: Please describe the group’s offerings that help your members be best in class. 

LR: The members benefit from far more than purchasing power alone. They benefit from other services available through cooperative membership, such as improved marketing channels, public relations, lobbying efforts, educational and training programs, networking opportunities, the sharing of best business practices and technology support.

“BLUE HAWK has many distinct strategic offerings from a turnkey e-commerce solution to an EDI platform to on-demand e-learning.”

— Lance Rantala 

RM: What does BLUE HAWK offer its membership that they cannot find elsewhere? 

LR: BLUE HAWK is the only buying group or co-op in our industry to offer its members a Multiple Employer Plan (MEP) 401(k) for retirement savings. Our MEP 401(k) Plan —- BLUE HAWK Retirement — aggregates our members’ retirement assets to deliver institutional pricing to our adopting members and their employees. 

Upcoming Events:

The group has two optional networking events and one mandatory conference each year. It changes the location of the meetings to keep things fresh and interesting for attendees. The 2020 Annual Conference will take place at the Rosen Shingle Creek in Orlando, April 29–May 1, 2020.

Delta Distributors
www.deltadistributorsllc.com
[ Tagline ] One Task. One Team. One Theme.

Mission and Membership:

Delta Distributors is a member-owned organization of 19 PVF-focused independent distributors throughout the United States. Established in the early 1990s, Delta provides its members and vendor partners with a business approach to the market that allows for continued growth, profitability and stability within the core PVF market segments. 

“It’s our unwavering commitment to our members and unique vendors partners that further create the opportunities for success, as the true power of Delta is the power and definition of team,” says President Charlie Carney. “We remain committed to providing large volumes of business through a limited number of distributors driving sales and more opportunities to our vendor partners, allowing all to achieve more and more profitably.”

Leadership:

In late 2018, long-time President Phil Knipper retired and helped in the transition to its current president, Charlie Carney. “It’s an honor and a privilege to follow Mr. Knipper in this role,” Carney says. “Phil led the Delta Group since the early 1990s and I’m blessed with the foundation and legacy in which to begin my tenure and to build upon all the great things that Phil has done throughout his career.” 

The Delta Group is comprised of a president, a board of directors and a recently formed Development Council, all of whom play a role in the governance of the Delta Group. 

RM: Tell us about your strategic goals and new initiatives the group will focus on in 2020 and beyond. 

Charlie Carney: 2019 was a strong year for our group in overall sales volume increase as well as member expansion. To maintain the positives, several key initiatives will continue to evolve and take place in order to facilitate the momentum. Examples include expansions and additions of business service providers, system and productivity enhancements, additions of vendor partners, new member additions in territories where room to grow allows, IT enhancements and others. 

“Great competition creates great opportunities and we will continue to capitalize and get better at what we do collectively.”

 — Charlie Carney

RM: Tell us about the unique services and tools provided to your members that make it stand apart from others.

CC: As similar as we are in many respects to other groups, we feel we have a unique position in our ability to communicate and educate because of our membership and the confidentiality we all practice. Delta is 100 percent transparent to both our member and vendor partners, creating greater vison and allowing for higher accountability, which  results in achieving the opportunities set forth by all. Great competition allows us to get better and stronger, enabling Delta to develop those tools that enhance our value proposition to our members and vendor partners. 

RM: How does the group foster the strengthening of business relationships throughout the channel?

CC: 2019 was a transitional year, allowing Delta to further develop our industry commitments and the strengthening of our relationships within. Strength in education from our association partners is essential to our business growth goals as well as our commitment to our industry. Our valued partners and associations include the American Supply Association, The PVF Roundtable, the National Association of Steel Pipe Distributors and others. 

Delta will commit more resources, time, and energy over the coming months and years to these and other groups, expanding the value and benefits by increasing our industry partnerships. 

RM: Please describe the group’s offerings that help your members be best in class. 

CC: Education through focused communications. We continue to utilize our vendor partners’ webinars for ongoing training as well as increase our service provider platforms and developments to strengthen our systems and teams. Changes in our meeting structure enable us to benefit from that time and enhance the internal portions of our businesses, creating higher efficiencies and more opportunities. Constant education and training will be our largest investments in the coming years. 

RM: What does Delta Distributors offer its membership that they cannot find elsewhere? 

CC:  What sets us apart is 100 percent transparency. In addition, we have a unique model that does not oversaturate a market with membership, which allows for  growth year after year.  

Great competition creates great opportunities and we will continue to capitalize and get better at what we do collectively. As mentioned before, the power of Delta comes from the power of Team, and we’ll continue to build upon our solid industry relationships through simple philosophies, transparency and confidentiality. 

RM: The group promotes a motto/theme of “One Task. One Team. One Theme.” How does it support this statement?

CC: “One Task” is simply the goal of achieving the success we all look for as a group —  identifying it, then going after it. “One Team” refers to our membership and the vendor partner relationships we share as Delta that creates our team and solidifies our bond within. “One Theme” is how we go about achieving our goals — what we all state, what we all share and how we all move. 

Upcoming Events:

Delta will hold its annual Member Partners Meetings in April and the annual Vendor Partners Meetings in the fall. Additionally, the group holds offsite meetings throughout the year with its Development Council, touring and meeting with some of its vendor partners at their facilities. 

The Commonwealth Group
www.thecommonwealthgroup.com
(website under construction)
[ Tagline ] United for Strength. Independent to Serve.

Effective Jan. 1, 2020, Embassy Group Ltd. and WIT & Co. Ltd. began operation under one entity named The Commonwealth Group, with offices in both Texas and Illinois. The merger was designed to further strengthen independent wholesalers of both respective groups. 

“Philosophically, both organizations had more in common than not, and recognized strength of consolidation resulting in one ‘best of breed’ buying group,“ says Brandy Reed, executive vice president. The group is member-owned and comprised of 132 independent wholesalers, with 1,500 branch locations, distributing plumbing, HVAC, waterworks and PVF materials. TCG maintains relationships with more than 140 vendors.

The group’s tagline reflects the extremely cohesive group dedicated to the utmost in service, not typically afforded by the big box stores. 

Leadership: 

The group is managed by members from both former groups. Mike Lepley serves as president, Brandy Reed as executive vice president, and Maureen Cosyns as senior vice president.

RM: What are TCG’s strategic goals and initiatives it will focus on in 2020 and beyond? 

Brandy Reed: TCG’s primary objective for the beginning of 2020 is successful integration of both groups to one unified business model, which is progressing quite nicely. Subsequent focus will be regarding technology that drives efficiencies for both manufacturers and distributors, and emphasizes the importance of speed and accuracy as it pertains to data.

RM: How does the group foster the strengthening of business relationships throughout the channel? 

BR: The Commonwealth Group hosts an annual spring meeting focusing on fostering relationships between distributors, vendors and member service providers. We provide a forum for candid dialogue, corporate updates and facilitate more than 8,000 individual business meetings. The level of productivity of the meetings is truly remarkable.

RM: Please describe how you help members be best in class, and what does the group offer its members that they cannot find elsewhere?

BR: The Commonwealth Group offers three distinct verticals: plumbing, HVAC and waterworks. TCG, by collective purchasing power, is one of the largest plumbing buying groups in the country. We have member transparency and technology enhancements and improvements that streamline the cost of doing business. Our manufacturers work with distributors to develop aggressive purchasing and marketing strategies to maximize their return on investment. TCG engages with vendor partners to offer exclusive buying specials, exclusive sales incentives and marketing opportunities at a substantial savings.

“We provide a forum for candid dialogue, corporate updates and facilitate more than 8,000 individual business meetings. The level of productivity of the meetings is truly remarkable.” 

— Brandy Reed

Upcoming Events:

The groups will finish out their individual meetings this year and have a collective Annual Shareholders Meeting toward the end of 2020. 

•    March 2–5, 2020: Spring Conference/ Legacy WIT, Irving, Texas

•    March 9-13, 2020: Spring Conference/Legacy Embassy, Miami

•    Sept. 22-24, 2020: Annual Shareholders Meeting, New Orleans

Affiliated Distributors
www.adhq.com
[ Tagline ] Together We Win

AD is composed of more than 800 independent members, 1,000 suppliers and 70 service provider partners in 12 divisions in the United States, Mexico and Canada. Total annual sales by members exceeded $46 billion in 2019. The primary channels are PVF-U.S., HVAC-U.S., Plumbing-U.S., Plumbing and Heating-Canada, Decorative Brands-U.S., Bearings & Power Transmission-U.S., Gypsum Supply-U.S., Electrical-U.S., Canada and Mexico, and Industrial & Safety-U.S. and Canada 

The member-owned and -governed group gives every member an opportunity to serve and be all in. AD’s key governance bodies include its member-elected corporate board and divisional boards. About 120 member companies serve on one or more of these boards. 

Leadership: 

Under the leadership of Bill Weisberg since 1991, he oversaw the group transition to member ownership in mid-2018. “As chairman, my focus is to ensure that every member of our group is represented, heard and respected,” he says. “As CEO, I’m accountable for our team’s performance on behalf of our members and suppliers, our corporate culture and strategy.”  

The PHCP Business Unit is under the direction of Jeffrey Beall, president: “Every day, the AD team comes to work in a deeply grateful mindset about our ability to make a real difference with independent distributors and suppliers. We aim to serve others, deliver on our promises, and make things better for everyone we interact with.” 

RM: Please tell us of any changes and successes that took place within AD in 2019.

Bill Weisberg: A lot of positive change took place in 2019 in our PHCP Business Unit as well as throughout AD, and we have a lot to be thankful for. It was record year for growth and we had the privilege of welcoming more than 240 new members. These new additions came to our community from three mergers, from our ongoing recruiting activities and some when they were bought by our existing members. In PHCP divisions alone, 12 new member companies and 20 new supplier partners joined AD. 

We also saw about a 15 percent increase in total member sales across AD , and we expect to close 2019 at more than $46 billion. Net distributions for year-end will be about $800 million on member purchases from AD suppliers. These numbers are strong indicators that independents are successful, thriving and stronger together. 

In addition, right before the end of the year, we announced a potential merger with SafetyNetwork, which would create a new safety-dedicated network division within our Industrial and Safety Business Unit in 2020. More to come on that. Exciting times for our team! 

RM: Tell us about your strategic goals and new initiatives AD will focus on in 2020 and beyond. 

BW: We are living in a changing world, and we’re always looking and thinking ahead. Our innovative mindset and our member boards empower us to take risks and be bold, while our size affords us the resources to make investments in programs that create competitive advantage and growth for members. In addition to traditional buying/marketing group services, we have major strategic initiatives that are operational within e-commerce, procurement services, marketing and people development/HR. 

Jeffrey Beall: In PHCP, we’re strategically focused on new services, member and supplier engagement, divisional growth, expanding into new countries and markets, developing our people, operating with excellence and governing inclusively. As an example, within PHCP, we added a new vertical, Decorative Brands, a few years ago and it’s exciting for the team to play a part in the growth of both members and supplier partners. Dedicated to the kitchen and bath industry, it fits well within our family of divisions and covers showrooms and stores across the United States and Canada. Linda Hoff is the director and she’s supported by an excellent group of associates. 

RM: What is your outlook for 2020? 

BW: I’m exceptionally bullish on the AD community and the impact we have in our space. We keep a keen and constant eye on industry landscape and trends that affect the divisions we serve. In 2020, we’re expecting continuing healthy growth. The reality is that growth is important to our collective survival, and this isn’t anything new. 

For all the independents who stay on top and ahead of trends, there’s consolidation — some decide to close up shop or sell. That means continuing to welcome new members and supplier partners is crucial to maintaining and expanding the benefits of our scale. It’s a primary focus of our leadership team, board and at every level of AD. 

RM: Tell us about the unique services and tools provided to the AD members that makes it stand apart from others.

BW: On average over the last 10 years, we’ve distributed 100 percent of rebates to our members, which alone is a compelling figure. We’re guardians of our members’ resources and we’re prudent about our stewardship of that money. And while 100 percent rebates are something that sets AD apart, financials aren’t the only aspect that our members value. I like to think we bring added value in discreet areas of strategic importance to our members, areas that enhance what they’re already doing well. AD is focused on bringing value far above and beyond the traditional benefits of a buying group and we’ve got many examples to share. 

Our eCommerce program is one powerful way to help independent distributors stay competitive and relevant — it helps them meet their customers where they are. In 2019, we celebrated our 100th member to go live with our eCommerce solution, which now supports almost 5 million SKUs. Other growth programs include procurement services, AD HR services, networks, market planning, digital demand generation, Winners Circle, AD Rewards and AD Education Center, and our newest program, a distribution manager development program in partnership with Texas A&M. 

Additionally, there are no meetings like AD meetings. These are incredibly important interactions between members, supplier partners, service providers and AD associates. We problem-solve, learn from one another and get reinvigorated about what we do together. Whether divisional meetings or program-oriented like our eCommerce and HR, Finance and IT Summits, we continually hear from attendees that they’re best in class and that makes me really proud. The team is continually developing new ideas to be all in for our members and supplier partners. 

RM: The group promotes a tagline of “Together, we win” as well as “All-In.” How does it support these statements?

BW: “Together, we win” speaks to our deep-seated laser focus on building relationships with members and supplier partners to help them compete and win. We support this mantra by living our fundamentals in everything we do — fundamentals such as doing what’s best for others, delivering legendary service, making quality personal, bringing it every day, honoring commitments, always adding value, having each other’s backs, and giving back are all inherently part of our culture and our interactions. 

Upcoming Events:

The group has quite a few things planned for the PHCP divisions in 2020. 

Beall notes: “Nothing rivals our annual meetings for networking and relationship building. They’re a forum for members, supplier partners, service providers and the AD team to come together to share best practices, tackle problems and celebrate success. I always feel energized planning and participating in these meetings and I hope to see many of you at the following AD and other industry gatherings this year: I encourage you to visit our website for a full schedule of all our meetings.” 

•    Feb. 10-12: AD eCommerce Summit, Trump National Doral, Miami 

•    March 24–26: AD Plumbing, PVF and HVAC Spring Network Meeting, Gaylord National, Washington DC

•    June 7-9: AD Finance, HR, and IT Summit, Hilton Austin, Texas 

• Oct. 18–21: PHCP AD North American Meeting, Gaylord Rockies, Denver 

•    Nov. 17-19: AD Decorative Brands Division Annual Meeting, Grand Hyatt, San Antonio