CE Pro April 2022 - 76

Channel
TIPS | EDUCATION & EVENTS | DISTRIBUTION
Nationwide
Marketing Group
Primes Members
for 2022 Growth
At the recent PrimeTime conference,
NMG reports strong CE revenues from
dealers and outlines tools and resources
for sustained success. By Jason Knott
NATIONWIDE MARKETING
Group's recent PrimeTime
event in Phoenix
was designed to inspire
its members to help their
customers continue to
" Experience the Journey "
of doing business with
independent retailers and
custom integrators. It turns
out that the 5,000 NMG
buying group members are
pretty motivated already -
as a group, they reported
an amazing 31% growth in
consumer electronics revenues
in 2021, compared to
just 7% sales growth in the
overall industry, according
to Lee McDonald, VP of
sales, Consumer Electronics
Division.
" Almost everybody was
down in terms of unit sales,
but the average sales price
among Nationwide members
was double the rest of the
industry, " reports McDonald.
The growth in consumer
electronics was just one
of the bright spots among
76 | CE Pro April 2022
NMG members, which cover
not only consumer electronics
but also furniture,
bedding and major appliances
as their key categories.
Of course, members
were somewhat strangled
by the supply chain crisis,
which is among the reasons
the group was dynamic in
terms of establishing and
maintaining its key vendor
relationships.
On the TV display side,
NMG has relationships with
Samsung, LG, Sony, TCL and
Hisense.
" There has been a lot of
shift in business over the
past year, " says McDonald.
" Vendors who are taking
more marketshare will invest
more with NMG members,
and likewise, those vendors
who lost marketshare will
also invest more with independent
dealers. "
McDonald reports that
NMG members sold 80% of
Hisense Laser TVs in 2021.
Looking ahead, McDonald
At the February event in Phoenix, NMG members reported
a 31% revenue rise in 2021 with an average sale price double
compared to big-box retail.
foresees lower TV display
prices and units in 2022 due
to a surplus of panels. He
cited NPD data predicting
a 14% to 18% drop in flat
panel display units sold in
2022, but McDonald anticipates
TV display revenues
among NMG members to
be up 25% compared to the
overall market.
The lower price outlook
for this year is despite the
enormous increase in freight
costs. To prepare for the
market in 2022, McDonald
advised members to:
1. Negotiate everything,
from delivery to bank/
credit unions to supply
chain
2. Multisource your inventory
- NMG currently
has seven distribution
partners. " Product
availability was the No.
1 reason consumers
gave in 2021 as to who
they purchased from, "
he noted.
3. Use data to drive your
decisions - NMG
has a data tool called
Primetrix that provides
members with deep insight
to buying behavior
from their Point of Sale
solutions.
4. Leverage your programs
to increase your
margin - McDonald
cited offerings such as
a new Samsung margin
program that is being
rolled out for members.
He also advised members
to leverage the
buying group's consumer
finance program.
Some of the other programs
NMG has put in place
for members include:
A new DirectTV program
An exclusive offer to
resell Vivint smart home
control and security.
Utilization of TBI for
NMG members to upgrade
their own phone,
internet, cybersecurity,
managed IT services for
their storefronts.
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CE Pro April 2022

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