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Dues Structure in Question

Details Private As Via Opts to Narrow Buying Group Relationship to HTSA

Contrary to a report sent out by Azione Unlimited President Richard Glikes on Tuesday, Via International, which bills itself as the “nation’s largest full-service home technology provider,” has not severed ties with all buying groups, CEO Randy Stearns said in a statement Tuesday. Instead, Via has decided to “consolidate its buying group relationships into a single membership” with the Home Technology Specialists of America under the Via International brand, Stearns said.

Via is a consortium of six companies that joined forces last summer to create the Via brand. Glikes’s statement, based on a phone call with one of two Via dealers who ended their relationships with Azione on Tuesday, encouraged dealers to “remain friendly” with buying groups even if the dealers are no longer participating in buying programs. Via’s Stearns told us Wednesday that Via is participating in HTSA “for all of the reasons that people are a member of a buying group,” including vendor programs, business reasons, industry affiliations and services provided by buying groups. On Glikes’ statement Tuesday, Stearns said, the official Via statement “is appropriate” and declined to comment further. “I don’t consider this to be a matter that requires a lot of attention,” he said.

Responding to whether Via will participate at the same buying level through HTSA as individual members had prior to the formation of the new company, HTSA Managing Director Bob Hana told Consumer Electronics Daily that agreements between vendors and group members are confidential. “We're in the unique position of being the only member-owned buying association, so it’s not appropriate to discuss volume levels per member” or how the group negotiates with vendors, Hana said. He said Via embraces all of HTSA’s core values and positioning as it did when it was individual companies.

On the dues structure of Via as a single HTSA member versus memberships of five Via companies that had been individual members, Hana said “this represents another change in our industry that we have to address.” Discussions are taking place as Via realigns into a single entity, he said.

As Via grows by absorbing more dealers -- and as other consolidation occurs in the custom electronics retail market -- that could diminish the role of buying groups, industry sources have said. Hana looks at consolidation as an opportunity for HTSA “to continue to explore new ways to provide benefits to our members.” The benefits and programs HTSA provided members 10 years ago were “much different than we're doing today,” he said. As the industry changes in ways no one can predict today, “it’s my responsibility to ensure that the benefits HTSA provides to members continue to adapt and evolve to be a win-win for everybody,” he said.