Anaheim, Calif. — BrandSource, the $11 billion buying group for independent majap, CE and home-furnishings dealers, has launched an enhanced consumer-financing program that combines low rates for members with new consumer promotions.
Bob Donaldson, the group’s digital communications VP, said the program’s private-label credit card features the member’s store name next to the BrandSource logo to help build customer loyalty and encourage frequent visits. He also described the approval process as “lightning fast” for credit applications and purchases, with approval rates at nearly 80 percent.
Customer incentives include double consumer rebates and a $50 prepaid Visa gift card that was heavily promoted over Memorial Day weekend following trial runs by several BrandSource members last year. The promotion, available to new and current cardholders, provided members with their biggest credit month ever in May, Donaldson said.
The program, administered by Citi Retail Services, also offers special high-dollar ticket programs to custom installers of home theater and high-end kitchens, with one Ohio finance ticket hitting $70,000, he noted.
In addition, members were able to choose the best financing terms at rates considerably lower than the industry, Donaldson said, which helped provide more than $1 million in bottom-line cost savings to BrandSource dealers.
Donaldson added that the group is working with Citi on future promotions to help drive traffic. “That’s what it’s all about – the more customers we can pull into our stores with special promotions, the more products our members will sell,” he said.
BrandSource, based here and founded in 1969, is owned entirely by its nearly 4,500 independent dealer members in the U.S. and Canada. Its members operate close to 3,000 BrandSource-branded stores in the U.S., and the group said it has the largest membership and unit volume among the industry’s buying organizations.