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The REDEX buying group added seven more RV dealership companies during the first quarter of this year and distributed rebate checks totaling almost $300,000 to certain members during its recent annual meeting.
REDEX, the Recreational Dealers Exchange Co., added the following dealerships: Stout’s RV of Greenwood, Ind.; Avalon RV & Marine of Medina, Ohio; Russ Dean RV of Pasco, Wash.; Rocky Mountain RV & Marine of Albuquerque, N.M.; Venture Out RV of Bakersfield, Calif.; Motor Sportsland of Salt Lake City, Utah, and Sunland RV of Las Cruces, N.M.
REDEX now represents 51 dealership companies operating out of 87 locations.
“We want dealers who have served our industry with distinction, both to (the national Recreation Vehicle Dealers Association) RVDA and to the consumer,” said Paul Skogebo, president of REDEX and of Robert Crist & Co. RV, a dealership in Mesa, Ariz. “We provide a 100-mile radius territorial protection for the dealer, strict dealership admission requirements and a code of ethics to abide by. It’s good for the dealer, our industry as it grows and certainly for superior customer satisfaction for RVers.”
The nearly $300,000 in rebate checks were distributed during the REDEX annual meeting in Las Vegas last Monday through Wednesday (April 19-21). The amount was a record, surpassing the $250,000 distributed during the 2003 REDEX annual meeting, Skogebo said.
The rebates were awarded to the REDEX members who exceeded volume thresholds with various REDEX suppliers. REDEX negotiates volume discounts with the suppliers of parts and accessories, insurance, financial, marketing and human resources services, which generated around $6 million in savings for its members during the past year, said Ron Wheeler, a REDEX co-director and principal of Wheeler Advertising Inc. of Arlington, Tex.
The $6 million in up-front savings is in addition to the $300,000 in rebates, Wheeler said. Not every REDEX member participates in every REDEX program, so only the members who exceeded the volume thresholds with participating suppliers received rebates.
The payment of rebates proves “REDEX works,” Skogebo said. “The supplier sells more and makes more money. We realize savings and pass that along to the consumer, which increases the dealerships’ business. It’s a win-win for the supplier, the dealer and the consumer.”
During the annual meeting last week, REDEX members heard presentations from 28 current and prospective supplier partners, and the buying group agreed to add six more partners, including Omnia Group Inc. of Tampa, Fla., a company that provides advice about which job candidates should be hired, and CallSource Inc. of Los Angeles, a call monitoring firm, Wheeler said.
REDEX also is continuing discussions with certain RV builders about private-label and volume-based discount buying programs.
Each REDEX member pays annual dues of $3,500. Collectively they employ around 2,000 people. The buying group is continuing discussions with insurance companies about obtaining employee health coverage and property insurance for its members.
REDEX also plans a significant marketing effort to inform the customers of each REDEX member dealer that they will get priority when seeking repair service at other REDEX member dealers when traveling in their RVs, Wheeler said.