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Distributors Form Powerhouse Alliance

12/11/2009 01:35:16 PM Eastern
Pittsburgh - Retailers and vendors have a new option in two-step distribution with the formation of the Powerhouse Alliance Group, a new national network of leading consumer electronics wholesalers.

The alliance is comprised of 10 regional and national CE and appliance distributors, which decided over the summer that the increased efficiencies and centralized resources of a coalition could better serve customers and create new line opportunities.

Members of the new corporation include, east to west: MRI in New England; M. Rothman & Co., covering New York through West Virginia; 21st Century Distributing in the Southeast; CTD and CED covering the Midwest; Autco in the plains states; Wave Electronics covering Texas to Mississippi; Mountain West in the Rocky Mountain states and Southwest; Volutone covering California, Nevada and Hawaii; and EDI in the Pacific Northwest.

Together, said newly named executive director Dennis Holzer, the Powerhouse Alliance controls $500 million in annual sales volume and 750,000 square feet of warehouse space.

"We provide a national footprint with a local touch," said Holzer, a 28-year veteran of the CE/majap distribution channel and a former principal of Pennsylvania distributor Hamburg Brothers.

Each distributor will remain a stand-alone business with its own name, operations, billing and product lines under the alliance. The difference, Holzer said, is that a member can now hand off shipping to a Powerhouse partner in closer proximity to a customer, cutting freight costs dramatically in exchange for a share of the profit.

In addition, all members will also participate in new product lines, to be sought out by Holzer, which can be centrally billed as a single program covering all 50 states.

Dealer training is also expected to improve under the Powerhouse umbrella, along with enhanced customer services such as faster lead generation, Holzer said.

 The confederation mirrors a model established within the custom installation market by the 13-member Edge Distributors Group and eight-member TAG (The Advantage Group), and follows a strategic partnership forged last spring between the Digital Delivery Group (DDG) and DSI Systems within the custom integrator market.

For more information on the Powerhouse Alliance Group, visit www.powerhousealliance.com, or contact Holzer directly at dholzer@powerhousealliance.com or (412) 973-7974.
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