Have you ever noticed how many trade associations there are? What do they do? They want you to pay annual dues, but where does that money go? What do you get from these groups, and why should you join?
Industry associations are everywhere. They exist at state, regional, national and global levels. Some have a specific purpose, while others have general goals. Here is a short list of acronyms for tire and automotive associations with members worldwide: AAIA, AASA, ABS, ASA, AWDA, CCC, HRIA, MEMA, MPMC, MRC, RMA, SEMA, TIA and TRIB – just to name a few!
Most trade associations are not-for-profit entities in the business of serving members. Despite their non-profit status, associations manage large annual budgets. Revenue comes from member dues, trade-show fees, training programs and royalties from third-party programs. Expenses come from payroll, buildings, furniture, utilities, trade shows and travel. Basically, associations have many of the same expenses that tire dealers have.
Like most organizations, an association’s goal is to generate more revenue than expenses while providing valuable services to members. Bottom line: Their members are their customers, and they are in the business of providing service. Sometimes, two associations join forces to become stronger and improve the level of service to members. For example, TANA and ITRA merged to become a more powerful association called TIA.
Trade associations want to improve the industries they represent. They can reach this goal by staying focused on government affairs to ensure that the activities of state and national lawmakers are in the best interests of members. Trade groups represent the views of their members, not those of special-interest groups, and they generally don’t have hidden agendas to push certain products or services.
Other benefits provided by trade associations are training materials that are second to none and money-saving programs. For example, these groups can help members buy goods and services that would otherwise be cost prohibitive, such as insurance, credit-card programs, training programs, business forms and supplies. Members can also learn about employment opportunities from trade associations.
If you decide to support any trade association, do your homework. Ask the group for a list of benefits, and find out what they do to support members. Ultimately, you are the customer, and they are the service provider. Make sure you are getting adequate service for your dues. Then, join the organizations that will give you a return for your investment.
I urge you to become a member of industry associations at both the local and national levels. They play a vital role in our business. With them, we’re better off. But they need us to exist.
