ProSource CEO Dave Workman, far right, presents the group’s Dealer of the Year Awards.
ProSourcelaid out an aggressive growth plan at its annual spring Summit meeting in Orlando, Fla., earlier this month.
As part of the strategy, president and CEO Dave Workman said the opportunity exists to grow the ranks of the $4.5 billion group from the current 540 businesses to upwards of 800 members within the next five years.
ProSource expects to kick off the plan with the addition of 40-50 new members in 2017, after bringing in 58 new custom-installers and $100 million in total new-member volume last year.
Revenue for the CI tier was up 10 percent last year while retail members enjoyed low- to mid-single digit gains, thanks to the resurgence of audio and up-market demand for oversized, fully-featured 4K Ultra HD TVs, Workman told TWICE. The increases, and targeted selling, have given the group “a seat at the table with manufacturers,” he said.
Also on tap for 2017: a digital marketing initiative that integrates vendors’ digital assets and promotional roadmaps into a cohesive marketing product that’s designed specifically for the independent specialty dealer, the group said.
The program was developed by an in-house ad agency shared with sister group AVB/BrandSource, and is currently undergoing a 120-day proof-of-concept beta test by 15 dealers and a predetermined focus group of manufacturers under the aegis of ProSource’s newly formed marketing committee.
“We’re fine-tuning everything for a rollout this fall,” Workman said.
The group is also implementing a recurring revenue model — considered essential in monetizing the smart-home category — and announced a partnership with Salesforce.com to “identify and quantify non-group brand volume and work with each dealer to better support group partners,” ProSource said.
Also driving revenue is a continued focus on the audio category, where the group holds a “commanding share.” Despite a decline in audio business on the custom install side, ProSource is buoyed by partnerships with the industry’s top audio manufacturers, and is moving beyond Sonos by selling advanced multi-room audio solutions through Bose, DTS, HEOS and MusicCast.