Trade associations

[sherrardk]

How do trade associations work? What are the benefits of belonging to one and how do they get set up? Thanks.

[EvianBaby]

Our company belongs to a trade association called HVCA. The idea of the association is that it has a directory of reliable companies in a particular field that can be found by related traids or customers directly. On joining and every few years we are inspected by the association to ensure that we are fit to carry their badge. I suppose it's a symbol to others that we are a reliable company who know what we are doing. They also provide a large amount of information to us if required and have helped in finding us better insurance deals, etc. As we have to pay an anual fee, based on turnover and some other factors (roughly 3-4k a year) then cowboy traders are not likely to want to part with their cash so it helps people recognise we are decent and know our stuff.

[sherrardk]

Thanks for that - but do you know how the trade association got to be the 'expert' on your field of business? What's to stop me setting up a trade association? Thanks.

[boxtops]

sher, does this help? http://en.wikipedia.org/wiki/Trade_association

[EvianBaby]

hhmm, that I don't know. I know that in our trade, if you are not a member of HVCA then you get treated like you're probably a bit shifty but I couldn't tell you how or when they came to be the muts nuts of the industry.

Thinking about it I think the body is made up by Owners/Directors of some businesses within the industries so I suppose it might go back to a bunch of know it alls wanting to set up a group.

[sherrardk]

Thanks both - will have to do a bit more googling! 3 - 4 K sounds a bit steep though.

[EvianBaby]

I just looked them up and it says they've been around since 1904 but not much more than that.

[EvianBaby]

The amount would entirely depend on your own business Sher. Our company, although small had a turnover of 1.4m last year which works against us on the cost side of things. If you're a sole trader with a lower turnover then the fee will reflect that.

[Buenchico]

A few 'trade associations' are little more than commercial companies who permit their members to use the the logos of those 'associations' in order to try to convince potential customers that they are dealing with a 'professional' trader. Such 'associations' will be run by the directors of those companies, rather than by people elected from within their membership.

'Proper' trade associations are formed by (and then run by) people working within the same trades who believe that 'being part of a club' will offer certain benefits to their members. Those benefits will vary from one association to another.

For example the Cutler's Company has (since 1624) "sought to maintain the standards and quality of Sheffield manufactured cutlery and steel products and to promote the name of Sheffield".

More recently formed associations often seek to provide a system whereby the public will know that they're dealing with a properly trained and accredited trader (sometimes providing an arbitration service for dealing with disputes). For example, I've often recommended here that anyone seeking an aerial fitter should look for the 'CAI Plus' logo. That's because of this:
http://www.cai.org.uk...the-cai/about-the-cai

As I'm guessing that it might be relevant to your question, here's what the SIA says that it does:
http://www.stoveindus...e_sia/our_mission.php
(I note that the SIA website names their chairman but no other officials. If I was considering joining I'd want to know whether the 'chairman' is simply the guy who created the SIA - and who can't be removed - or whether there's a proper constitution, with an elected committee).

Chris

[sherrardk]

Thanks Buenchico - himself reckoned one didn't exist for his industry. He has come across some 'shady' dealings recently that you would think would be frowned upon by the relevant trade association, but I see from your link that the business in question is a member of this trade association (they are trying to promote quite shameful practices as 'industry standard' and it really goes against the grain - can't give too much detail here, obviously).

[boxtops]

"best practice" might be a better term than "industry standard" if the industry's setting the bar quite low!