Proposed Merger Of The APS And Asda

angore summarized the issue of merging APS and ASDA very accurately. The APS needs to solve its internal problems and short comings as he described if it is to survive regardless of the outcome of any merger.

It don't look like we are looking at the demise of the APS they seem to be doing the things to survive but the merger may be the last chance for the ASDA.

So just what does the ASDA financial picture look like?

Well, the last filing I could find was for FY 2020 when they had revenues of $267,000 and expenses of $273,000. Executive compensation was $74,400 that year. Go back through time and you see that ASDA revenues were running between $700,000 and $835,000 (2012) for the years of 2011 through 2014. 2015 shows a steep drop in revenues to $528,000 and from then on it declines every year except for a slight increase in 2019 and ends up at the $267,000 number above for 2020. Wonder what this year's revenue looks like?

Lots to chew on here:

https://projects.propublica.org/non...ns/135637047

Lots of attrition and contraction in the industry over the last decade IMO, no surprise there. One currently active show dealer who used to be an ASDA member quit about 4 years ago saying that in their opinion they got very little for their money. So it's not just a diminishing number of dealers, but the value (or perceived value) that the ASDA brings to its members... or not.

I don't see the point of an organization like ASDA. My perception is that they don't sanction bad actors, and even they did, so what? One doesn't need to be a member to transact anyway.
The explosion of access to auction sites and firms, along with eBay's feedback system (and my own commoner sense) provide me as a buyer the material and assurances I need.

If the ASDA financial trend line continues on its current trajectory it will disappear in a few years at most. The one employee accounted for 27 percent of revenue in 2020.

Did you mean revenue or cost?

27% of expenses which in this case is virtually identical.

The ASDA brand was meaningful to consumers years ago but, for reasons unknown, the organization declined to police the brand and I infer that at least some dealer members didn't want it to. As Don has written, the hobby has uncomfortable aspects, such as deceptive sales, that hobby leaders seem unwilling to discuss or confront. Scott has stated a sensible reason to work with ASDA, namely to acquire the ASDA brand, amplify and enforce it, and thereby give online buyers a way to identify reputable dealers. On platforms that have fewer buyer protections than eBay, possibly HipStamp and Delcampe, this could have meaning. APS would have to immediately review all dealer members and users of the ASDA brand, and send cease-and-desist demands to those dealers who don't meet APS' updated standards of quality. And on eBay, I doubt even that effort would make any difference. eBay wants the brand or identity of the seller not to matter, so only the platform matters. Its buyer protections generally are so strong that I doubt ASDA branding would have any effect on consumer behavior there. Time will tell.

However, all of the foregoing could be accomplished without a merger. ASDA could license the ASDA brand exclusively to APS, then wind down ASDA operations, becoming only an IP holding company at the cost of a few hundred dollars in maintenance costs per year, which APS could donate. That would avoid all the complications and costs of a New York state merger as well as the appearance that APS has inherited whatever leadership or management policy caused the dilution of the ASDA brand.

imo cp has a good suggestion...........needs a careful look into.

Does the APS-Dealer brand need the ASDA at all to strengthen the APS position on dealer ethics and behavior?

The APS could strengthen its own Code of Ethics to meet what it would desire them to be following the proposed merger, but there is no need for ASDA to participate in that redefinition. This assumes that the current APS Code is not yet at full strength. If it is, then what can ASDA bring to the merger?

The APS could then invite all ASDA members who were not part of the APS-Dealer class to join. Of course, we have that option now. Has it been tried and if so, what are the results. How many members of ASDA are not already APS-Dealers. I assume that since both lists are present on the respective websites, someone has gone through and compared the lists.

What percent of current advertisers in the AP and APRJ journals are members of the ASDA, but are not currently (or yet) APS-Dealer members? Do we want dealers who do not adhere to the APS-Dealer Code of Ethics standards to be advertising in our publications?

What level of financial loss would such an approach result to the APS? Does that loss then balance the desire to protect our members?

Mike

All fine and dandy, but this assumes that the ASDA *wants* to wind down operations and dissolve itself as a philatelic entity... a direction or goal which we have zero evidence to support up to this point.

All of these suggestions are coming from the APS-perspective side of the equation, and some of them, while well intentioned, may be perceived as somewhat presumptuous.

It sets a tone of "you guys just go out of business; we'll take over from here"... when in fact it was the APS that broached this "merger", not (as far as I know) anything that the ASDA ever approached the APS about.

Were I a member of ASDA, the tenor of the public discussions and opinions about this merger would be offputting (and I say this as no fan of the ASDA), which implies that at the very least, the ASDA membership should be asking some likely long overdue firm questions of its leadership and their long-term goals and visions for the organization's future.

I agree with Dan and Chris.

In my opinion, a lot of this is going to fall into the category of 'is ASDA willing to change course?' independent from any kind of partnership. I believe that ASDA is suffering not from a decline in the hobby but rather from the significant post-internet changes to the hobby. I think that the philatelic marketplace has been shaken by a huge influx of 'sellers' (as opposed to 'dealers'). This has impacted not just traditional dealers but also to an extent auction houses.

The ASDA was able for many years to maintain influence in the marketplace. A type of dealer cabal which, at least in the minds of some people, had some meaning. During the early internet years, ASDA (like the rest of the hobby) was given a pass because the philatelic hobbyists were not early adopters. But this grace period ended at least a decade ago and like many traditional philatelic organizations their memberships and influence has eroded since approximately 2012. These issues have now come home to roost and hard decisions will need to be made. The window of opportunity is quickly closing, and much time has already been lost. The time to discuss 'should we change' has already passed, it is now time for decisive action. I think this is true for anyone involved in the hobby.

I have no issues with anyone who takes a position 'I am not going to change' or if a dealer or organization decides to go down with the ship. Change is hard, stressful, and can be risky; the default behavior of most organizations, businesses, and people is to do the same today as they did yesterday. Many in our hobby are older and may choose to simply stay the course, I feel that is their decision to make and I support them. But for anyone or any organization that seeks to be around for years to come; then they need to figure out the new marketplace and a direction forward which will, like it or not, include evolving technology.

This is a bit like the resistance I often see when trying to get folks to understand they need to update/upgrade their computers. Tech is fast moving but staying fairly current and abreast of the changes is important. I would never recommend that anyone surf the bleeding edge of technology; but staying just behind the curve is quite feasible.

I would recommend that any philatelic organization develop a vision and hire internal resources to make that vision happen. Ditto for full time dealers and auction houses. I think this even reaches down to 'sellers'; I am astounded to see how many folks are trying to manage large inventory without a barcoded inventory control system. I have implemented many of them for decades, it is not rocket science nor it overly costly. A dealer or seller could implement this with equipment that would fit in a backpack (full PC, software, scanners, and bar code printers). Integration with an accounting application and with your online sales presence becomes quite feasible.

Of course, organizations like ASDA does not need POS (Point Of Sale) tech, but they do need a coherent tech vision and plan on how to offer online value, how to capture online sellers. I think that both the APS and the ASDA could have become incredibly important if they could have offered technical support and website hosting to members. No matter how we look at this, being able to deliver content is the name of the game, and frankly it has always been. In my opinion delivering content is a core competency. It does not matter if you are distributing periodicals, auction catalogs, or pricelists. Moving forward you are going to have to figure out the online tech needed AND be willing to continually invest in keeping it fairly current.
Don

Mike, I do not think the APS requires an advertiser who is a APS Dealer Member to say so in their ads, but some do? I think all sellers advertising in the AP are APS members but not sure if membership is required to purchase ad space?

APS membership should be required as a minimum to advertise in the AP.

Yes, you must be an APS member to advertise.