Retail Observer

RETAILOBSERVER.COM SEPTEMBER 2019 60 B U Y I N G G R O U P N E W S RO S ervice with a smile" may be the mantra for retailers, but independent dealers who provide their own appliance repair services aren't always smiling. Indeed, dealers often offer in-house service departments at a loss – many continue to provide appliance repairs and related services simply as a courtesy to their customers. Among the special pain points they face are increasing product complexity, particularly among smart appliances; billing rates that don't cover costs; and finding and retaining servicers in a tight labor market. BrandSource, the leading merchandising co-op for independent appliance, home furnishings and consumer tech dealers, believes its members' service operations could and should be profitable businesses. It's why BrandSource is taking immediate steps to tackle the problem. Specifically, BrandSource has formed a committee of carefully selected servicing members with demonstrated, sustainable business models. These dealers will pool their best practices and work with the manufacturers and their fellow members to develop a best-in-class service model that other BrandSource dealers can adopt. "The goal," said Jim Ristow, CEO of BrandSource parent AVB Inc., "is to ensure profitability for servicing dealers. The challen- ges are real, and BrandSource is proud to lead the way with real solutions." The new Service Committee will focus on the following areas: • Enhancing operational efficiencies to lower costs • Receiving fair compensation for OEM warranty repairs • Attracting, training and retaining talented servicers • Creating consumer awareness Committee member Scott Bekins, president of the Michigan- based appliance, repair and custom integration business that bears his family's name, is passionate about the project. Bekins fears that the shrinking base of service outlets poses a threat to the appliance industry and to consumers. "Customers assume there is an 'appliance god' who's always looking out for them, and that is far from the truth," he said. "Unlike the auto industry where dealer service is mandatory, most appliances are sold today through non-servicing retailers, and those that still perform their own repairs are disappearing." The result, he said, is that consumers often encounter unacceptably long service delays and unqualified technicians, which creates ill will toward the manufacturers and dealers and fills our landfills with discarded appliances. "The industry needs to recognize that service is how you build your brand," Bekins said. "And our brand is everything." The Service Committee will hold its first face-to-face meeting next month at the 2019 BrandSource Convention where additional details about the initiative will be announced. The annual show, slated for Aug. 24-27 at the Gaylord Texan in Dallas, will mark AVB's 50th anniversary with the theme "Better Together." BRANDSOURCE TACKLES APPLIANCE REPAIRS Buying group addresses dealers' service challenges " BrandSource is helping dealers like Michigan-based Bekins keep their service departments viable.

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