What may be the first car audio distributor buying group has launched as a means of creating better inventory control and pricing.
The new Mobile Electronics Distributor (MED) merchandising group has been launched by Ray Windsor of Leadership Systems.
It hopes to create better practices in distribution that will result in less transshipping, better product supply to retailers and better pricing.
For example, currently, a supplier may be left with inventory at the end of the quarter, because one of his distributors elected not to buy. So he sells at a discount which hurts the other distributors. Under MED, suppliers would receive a group commitment from distributors, so the supplier could predict his sales, and prevent fire sales and discounting, said Windsor.
Another problem is that distributors wait to place large orders so they can get volume discounts, but this practice of waiting leaves them out of inventory at various times, creating a supply problem for retailers. MED says it would fix the issue.
Windsor said MED is a closely knit community of like-minded distributors and suppliers. Car audio is one of the only segments of consumer electronics that does not have a distributor buying group, he said. A counterpart to MED in home theater is the The PowerHouse Alliance, a 4 year old organization with 13 members, representing over $800 million in annual sales.
Some of the distributors who have announced support of MED include P and E Distributors in the Southeast and Eagle Distributors of Texas.
Windsor said he is inviting distributors to individual meetings at the CES Show in Las Vegas next month. For information [email protected] or phone; 949-228-2153.
The MED merchandising group is not affiliated with Windsor’s role in the controversial Amazon car stereo service network.