"There is a shrinking database of distributors – it's not like it was 20 years ago when there were a bunch of unaffiliated WDs out there," offers Bill Burns, CEO of Independent Warehouse Distributors (IWD).

"What's left of our WD marketplace is sad. The few WDs left either operate as 2-step wholesalers or own multiple jobber stores of their own," says Skip Potter, executive director and CEO of the Chesapeake Automotive Business Association, an aftermarket membership trade association of businesses in Maryland, Delaware and Washington, D.C.

When using other membership rosters as recruiting tools, program groups must concentrate on providing maximum value to stand out.

So what are distributors looking for?

"Let's make no mistake, it's always about the money," notes Dan Freeman, president and CEO, Automotive Parts Associates (APA). "An auto parts distributor joins a group for the additional discounts, allowances and rebates they receive through the group. After that it's some of the intangibles: the camaraderie, networking and information sharing that happen at the group events, committee meetings and through phone and e-mail conversations."

A strong marketing program that helped accomplish the goals of business was the priority for Pat Young Service Company in Valley View, Ohio, when they decided on program group affiliation more than 20 years ago. "We are very aggressive in the marketplace and enjoy having marketing tools at our disposal. We can decide how to put them together best for our business," says owner Duke Young, whose company is one of the flagship Federated members. "Federated is very hands-off in demanding you use anything, but we like participating."

Becoming affiliated with a group known for reliability, ethics and successful business methods is also important for WDs, Lambert says. "What I do and what the others do is use our reputation and hopefully that attracts new prospective members. We like to think our reputation, our program precedes us," he says. Their cohesive working relationships with manufacturers can also often make membership attractive to potential members, he says.

The benefits available beg the question why WDs would remain independent, Potter says. "Considering the vast diversity of group options available to a WD, I cannot imagine why a WD would not affiliate with someone. Perhaps the only WD benefiting by non-affiliated independence would be a WD so large they could attract all the benefits on their own," he says. Overall, "the benefits — product discounts, terms, shipping cost savings and marketing — of group affiliation have long been too attractive to ignore."

The few remaining independent WDs are not blind to program group perks. "The major benefit is that they can get me a better rebate, better purchasing power. They could also bring to me any connections with national installer or national fleet groups," says Herman Berlin, owner of independent WD Baltimore Auto Supply, Baltimore, Md.

But the group incentives are also peppered with some drawbacks. "If you're part of a program group that specifies a major product line, you are obligated by that product line even if it isn't one that is really an accepted brand in your trading area," he says. "I like having more freedom."

Overall the choice to join a program group is individual, Young says. "Every group has its own personality. You have to look at your marketplace first to see who is out there and decide if you want to be a part of it or separate. There is a different fit for different people," Young says.