Rental Management recently asked A.R.A. Deputy Executive Vice President Joe Lynch to answer some frequently asked questions about A.R.A.'s new MBA program.

What is the largest order that has been placed? And what is the average order?

Lynch: The largest order so far was $64,040. The average order is up to $1,373.

 

How many rental operations are members of the new program and what do you think the biggest advantage has been for members so far?

Lynch: More than 900 operations are members of the MBA. The ability to have instant credit with the growing list of almost 250 vendors is a big advantage.

 

When are Canadian members allowed to purchase through the MBA and how will the fees be set up?

Lynch: Jan. 1, 1999, is the starting date for drop shipments and warehouse ordering. Canadians will be offered $50 off the $750 enrollment fee through Jan. 1, and the $80 per month service fee will be waived through July 1. The money-back guarantee will last through July 1. Canadians should have received a flyer in October announcing the Canadian program.

 

Why aren't big companies such as Ditch Witch, Bobcat, Anchor, Eureka, Vermeer, etc., in the group yet?

Lynch: Good question. Many of those mentioned belong to TruServ and offer pretty good discounts. First, these vendors consider A.R.A. members to be established customers and have been told by TruServ that if they belong to the MBA, they'll lose the $1 million to $2 million they have built up with them. They figure that the independents with worths of at least $10 million to $50 million collectively on some lines will never join anything so they can continue offering discounts to the TruServs. It takes the members writing the checks to ask their favorite vendor why it sells to TruServ and not to them.

 

What would you say to a member who said: "Some prices are really good but why are some only a little better than what I'm paying now? "

Lynch: The MBA never guaranteed the lowest price, just parity. A number of members have established decent discounts throughout the years, some better than others. This information is fed back to the buyers so they can negotiate a better deal the next time around.

I need my manufacturer's rep and distributors. Will they still call on me?

Lynch: These relationships, hopefully, will not change. Most manufactures that have joined the MBA have maintained their relationships with the reps and distributors. The first warehouse will be in Princeton, Ill., 60 miles east of the A.R.A. headquarters, right on Interstate 80.

Members who wish to hear more or to sign up, may call (800) 334-2177, ext. 281, and vendors who want to hear more may call (877) 200-4800.