Remember the Pool Retailers Cooperative?
Launched in 2014, PRC was a buying group exclusively comprised of independent brick-and-mortar pool retailers. The fledgling co-op set up shop in Memphis, Tenn. inside a facility that included a 2,500-square-foot model store where members could train. Benefits included dividend payouts and access to an exclusive line of private-label equipment that would not be available online or at mass retailers.
To build up its base, PRC waived the $1,000 initiation fee for the first 200 to sign up.
But it proved too much, too soon.
PRC closed in March after an agreement with a major vendor fell through, said its founder and former president, Rod Sterling. It had approximately 100 members at the time, and at least five employees.
Now Sterling is developing another buying group and approaching it from a slightly different angle.
He currently is securing vendors and recruiting members to join the Mega Pool Group. It’s a new division of Mega Group USA, a Memphis-based organization that comprises 1,700 independent dealers specializing in home furnishings and appliances. The group represents 3,200 stores nationwide.
Now, with the backing of a major buying group, Sterling foresees better benefits and more marketing support for pool industry members. Mega Group USA’s constituents in the appliance and furniture industries currently enjoy business and health insurance, consumer financing and a variety of advertising and marketing services such as direct mail, circulars and custom website development. Sterling said many of those perks will be available to the pool and spa industry.
Another thing that separates Mega Pool Group from Sterling’s last endeavor: Access to outdoor living products such as patio furniture and grills.
“With PRC, that wasn’t even a secondary focus,” said Sterling, who serves as the group's pool and spa director. Because of Mega Group’s deep understanding of the furniture industry, he added, “we’ll be able to leverage some of the outdoor living suppliers to help the pool people.”
By Sterling’s own admission, his initial concept was too ambitious and too narrowly focused on independent retailers.
“I do believe there were flaws in our model,” he conceded.
To avoid past mistakes, he’s broadening membership to include builders and service firms.
He’s also starting small. For the time being, membership will be exclusive to those in the Southeast.
“Our footing is more sound,” he said.