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.