Payouts now average $6,500 per member
By Alan Wolf, YSN
As a member-owned entity, BrandSource Financial (BSF), like the group itself, was created solely for the good of AVB dealers.
That means that besides benefitting from the commercial clout and more than 60 vendor partnerships of AVB’s in-house floor planning arm, members pay no interest on inventory financing, and profits from the program, now in its 12th year, are funneled back to dealers in the form of annual cash distributions (ACDs).
Payout percentages are calculated each year, and BSF General Manager Chris Moore was pleased to announce at the recent AVB Leadership Conference that the rate for the trailing 12 months was increased by 25 percent. Payout is now at half-a-point or 50 basis points, which translates into $500 back for every $100,000 in annual volume financed through BSF.
As a result, Moore noted, ACDs now average $6,500 per member, with many dealers receiving disbursements of well over $25,000.
“Members were very excited to hear the news and are still talking about it,” Moore said. Checks will be mailed to participating dealers by the beginning of February, she added, and BSF is forecasting the same payout for 2022 — which is double the value of other financing companies in the industry.
The benefit was confirmed by BrandSource member Mike Heintz of University Electric Home Appliance Center. “I would say that I get at least twice the payout with BSF than with the other two [competitors] combined,” he said. “It is a no-brainer to at least switch a brand or two over to your member-owned finance company.”
Ron Bemis, principal of Bemis Appliance, concurred. “As a member-owned group, it just makes since to use BSF. We own it, and the more successful BSF is, the more money it puts in our pocket,” he observed.
Added Don’s Appliance’s Tim Hillebrand, “BSF has been a great financing tool for the growth of our business. Having an additional floor plan company has helped us manage inventory and allowed our business to continue to grow. The additional ACD payout is super and allows us added margin dollars. We are moving more brands to BSF!”
“We own it,” reminded Moore, “and the more successful BSF is, the more money it puts in your pocket. Looking forward to doing even more business with you in 2022!”
BrandSource, a unit of YSN publisher AVB Inc., is a nationwide buying group for independent appliance, furniture, mattress, and CE dealers.