"There's a convention for bubble gum machines?" It's a little more involved than that, but that's what my neighbor said this spring when I told them I was headed to Jacksonville, Florida, for the NBVA (National Bulk Vendor's Association) annual convention.
For those who don't know, the association's charge is to represent the interests of roughly 350 bulk vendor members in the U.S., as well as thousands of other bulk operators. The industry generates approximately $400 million in annual sales. My employer, Sugarloaf, has become very involved as a member of the NBVA since entering the bulk business, and especially since our acquisition of Folz Vending in 2003.
Roger Folz was a leader and past president of the NBVA, helping drive the organization forward for many years. It was his love, and I am honored to be following, even in a small way, in his footsteps, having been voted in as a new officer of this association at the recent meeting.
The NBVA convention is different in a refreshing way. This year's attendance was a healthy 534 people, perusing 96 booths taken by 52 separate exhibitors. It's not the noisy-clang-clang that you get at the AMOA, ASI, and IAAPA. It's a small hotel show where everyone knows everyone. However, if you're a new entrant to the industry, you really get the red carpet treatment. Not only are there seminars for all attendees, but also specific seminars for new NBVA members. Additionally, new members are escorted around the show floor by industry veterans and introduced to every exhibitor. I find that pretty impressive.
It would seem to be a pretty straightforward charge to represent a relatively small industry. But, as with any association in any business, it isn't as simple as it may seem. When you bring together competitors, and expect them to play well together, it works for some, but there are inevitable hidden agendas in all industry associations.
Ironically, I find this is one of the big benefits of being involved in the industry's associations. I want to know my competitor. I want to hear what he has to say, and how he says it. The off-line conversations at conventions are often the biggest take-aways of the week. If someone wants to know what our company is doing, then come to the convention and ask one of us. We'll likely tell you. I've always been impressed that the associations are able to accomplish as much as they do. The NBVA is no exception. This group has positively impacted legislation dealing with sales tax exemptions and a lead content public relations nightmare; plus, it runs pretty efficiently on a day-to-day business.
The association's General Counsel (who functions much like an executive director for many other associations) Morrie Much, and his able partner in the law firm, Mitchell Roth, are big reasons why the organization is successful. It's clearly not the money they're paid, so we must mark it up to passion and loyalty. They've been with the NBVA since 1969.
There is always a segment of any industry that feels they are not being represented by the trade association's board of directors. The NBVA is dealing with this now although I don't really understand the history here. Many board members represent small to medium size bulk businesses, and I can't imagine an industry of this size supporting multiple associations. Related groups should come together for a single, stronger, association. They'll accomplish far more together than apart, and every effort should be made to represent all segments of the industry.
The trend over the last decade is for associations to cross-market to other amusement vending companies, and this cross marketing goes both ways. Bulk operators are looking at amusement vending, and amusement-vending operators are looking at bulk vending. In the long run, this will impact associations of many industries as companies integrate both horizontally and vertically.
The NBVA is in transition. Consolidation (a la Folz Vending and other operators and manufacturers) continues to reshape the industry and its leadership. Last year's lead content issue was a defining moment for the NBVA, which was primarily charged with ensuring that the membership was being informed. It was visibility that no one wanted, but the association, encountering unchartered waters, handled it well. Trade show costs are up, and exhibitors are harder to come by when budgets tighten and consolidation occurs, making the economics of a small association challenging to say the least.
Given the current day dynamics, the future looks promising for the NBVA. Bulk vending has been innovative and legitimized itself as an industry. Technology and accountability at the machine level have all played a part. All segments of the industry have played a major role in this evolution too.
The energy in the NBVA executive meeting and boardroom was invigorating and productive, especially for an association with a colorful, sordid history of verbal boardroom brawls. The industry and the association, under the strong leadership of outgoing NBVA President Frank LaVecchia, and Dan Case, the new incoming NBVA president, and the rest of the present executive team, are uniquely poised to move beyond the problems of the past. The future of the NBVA is very bright indeed.