CONSOLIDATED DISTRIBUTORS, INC. (CDI) is a marketing group, an affiliation of wholesale paper, sanitary maintenance, and restaurant equipment distributors with locations nationwide. Also associated with the group as Preferred Sources of Supply are the premier manufacturers in these markets, along with numerous affiliated suppliers of programs and services.
The primary focus of CDI is to assist in facilitating the maximum purchases by its distributor members of products offered by its Preferred Sources of Supply. In addition, the group implements programs and services which enhance the profitability of its independent distributors.
Starting with a member base of ten major distributors in July of 1990, the company has grown to a current membership of over 100 locations nationwide representing sales in excess of $2.5 billion. The company is owned by its key members, and there are presently thirty stockholders, each owning one (1) share. Members earn the option to purchase stock based on their support of the group's, Preferred Sources of Supply.
Using the potential purchasing power of these distributor locations, CDI headquarters contacts major manufacturers in the industry to solicit their affiliation with the group. Negotiations with these manufacturers include the payment of a Marketing Allowance, including Annual Growth Incentive Programs, which are justified on the basis of the combined purchasing power of the group members. These Marketing Allowances are then split with the members on a pro rata distribution based on their performance with the group. The Marketing Allowances retained by CDI headquarters are used to defray overhead costs, and a portion of the pre-tax net profits at the end of each year are returned to the stockholders, again, pro rata to their generation of gross revenues for the group.
There is a $100.00 per month membership fee for distributors, which is deducted from monthly Marketing Allowance distributions, and these funds are used to defray the cost of lodging for attendance at the group�s Annual Member/Supplier Conference.
CDI is governed by a Board of Directors, who are also members. The responsibilities and authority of this Board include:
- Establishment of Group Marketing Philosophy
- Approval of Operating Budget
- Approval of New Members
- Approval of Preferred Sources of Supply
- Participation in Supplier Review Meetings
- Development of Auxiliary Programs and Services
As stated in its mission, the ultimate objective of the group is to secure a distributor in every major metropolitan statistical area in the country. In conjunction with the growth of this member base, CDI seeks to affiliate with the premier manufacturers in each market serviced by these distributors.
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