"As the three men talked after dinner, the conversation naturally turned to their mutual business problems...."

So begins Ray Wixcey's "brief history" of the early days of NAPSA, written late in 1970 and published in the winter, 1970-71 issue of NAPSA's RESULTS newsletter.

The three men were Ray Wixcey, Jule Bell, and Balas Marks; — the time autumn 1965, — and the place, Canton, Ohio, site of Wixcey's business, Allied Appliance Supply. Their business problems were varied: one had just lost an important line; another was frustrated in his marketing efforts by the lack of a catalog, the third wanted to explore the possibility of cooperative buying.

They all agreed, however, that in an industry dominated by large distributors, they, as small businessmen, were seriously handicapped in their efforts to get lines and competitive prices from manufacturers, to market their products effectively, and to gain the business information and expertise that would help them grow.

These three businessmen were part of a rapidly changing business environment created by the explosive growth of name brand appliance sales in the 1950's and 1960's. That growth meant an equally rapid growth of the parts/service market and of competition for parts/service revenues. New or expanded parts supplier companies entered the field, as did new parts distribution and appliance service companies.

Both the OEMs (Original Equipment Manufacture) and the well-established parts distributors felt the increasing competition along with the growing pressure from customers who wanted improved parts availability and service. In order to maintain their dominance and consumer demands, OEMs and established distributors formed an alliance. "Exclusive" OEM-parts distribution networks were created such as Appliance Parts Jobbers Association (later renamed Appliance Parts Distributors Association) which excluded non-OEM suppliers from participation.

Thus by the mid-1960's, an expanding home appliance parts industry was divided into the "haves" (the OEMs and OEM-authorized distributors) and the "have-nots" (the non-OEM suppliers and their distributors).

The "haves" enjoyed the benefits of established relationships with the OEMs, experience in the business, and the support of a strong trade association.

The "have-nots" had on their side the rapid growth of the market and that they were energetic, aggressive and innovative. These businessmen were confident they could compete in a fair fight, but they would have to work together to do it.

As Wixcey put it, "No single business or entrepreneur was it a position, financially or otherwise, to do much about the industry. If any action were to be taken that would help the plight of these small businessmen, it would be necessary that more people be involved...through the formation of a trade association."

He went on to ask a critical question: "Would it work in a very diversified industry which already had one trade association which purportedly spoke for all the industry?" Years were required to answer that question. Diversity bred disagreements which more than once strained the cohesiveness of the fledging group.

But the common needs were greater than the disagreements, and from the beginning NAPSA grew rapidly. By the early 1980s, it was clear that the industry had two strong associations, that the role of "independents" had changed dramatically, and that NAPSA had played a vital part in bringing about these changes and helping many of the "small businessmen" who created it grow into major parts distribution companies.

In November and December of 1965, Ray Wixcey began contacting prospective members for an association. As a part-time salesman for Frantz Manufacturing Co., Wixcey traveled regularly in the Midwest and Northeast, and had opportunities to talk to many small distributors. They agreed they needed an organization, but asked, "Who will belong to it? What will it do?"

Wixcey replied that "the philosophical questions of who, what and why could be taken up later." The immediate task at hand was to get an association into being, through a "formation meeting" set for February, 1966, at the Downtown Motel in Canton.

By the end of 1965, Wixcey, Jule Bell and Balas Marks had gained allies. Al Cohen from Miami, Dave Vinik from New York, and Lou Marano from New Jersey joined the search for members, each recruiting in his own area.

The group which met in Canton in February 1966 included both distributors and some interested manufacturers. The distributors present were: Ray Wixcey, Dave Vinik, Lou Marano, Dave Nussdorfer, Al Cohen, Dave Zwelling, Charlie Edwards, Balas Marks, Jule Bell, Jack Wynar, Frank Jarmusz, Jim Goff, William Davis, Lew Fall, John Malatesta, Marion Beloat, Don Harris, Maurice Earl, Gerald Shrively, Wilson Movic, Ray Haas and Ferdinand Mason. Manufacturers attending were Ernie Hodas (ASSCO), Lou Fried (Dependable), Bill Budner (Franz), Bill Smith (P-G), and Ron and Mel Bennett (Westward).

Immediately, the first in what became a long series of debates began: Who was eligible for membership? Was the new group to include distributors of non-OEM parts only, or was it to be open to those who distributed both OEM and non-OEM parts? Were companies which were just moving into distribution from retail and service work eligible, or only those who were 100 percent wholesalers? How big should a company be in terms of wholesale parts to be eligible?

The OEM-parts vs. non-OEM parts distribution was the most emotional question. As noted previously, the relationship between OEM and non-OEM manufacturers and their distribution counterparts was intensely competitive. It had led to the expulsion of the non-OEM manufacturers from Appliance Parts Distributors Association (APDA) functions.

One faction at Canton wanted the new association to be equally exclusive, so that any distributor who carried OEM lines would be ineligible. Others feared that this policy would leave the association dominated by non-OEM distributors and would exclude too many potential members.

Other issues divided the group: What would its purpose be? Some wanted a buying group, which would have been an illegal activity for a trade association. Others were primarily interested in developing a catalog although not everyone shared this priority and so that project would be a difficult one.

Arguments went on for hours. "At one point we broke up for lunch to avoid breaking up altogether," recalls a Canton participant. Ray Wixcey described his own doubts as he began to think "nothing could be agreed upon." In the end, however, a consensus finally emerged:

1) The new association was to be inclusive rather than exclusive, available to all who needed it. That meant including distributors of both OEM and non-OEM parts, and firms which were still doing some service or retail work as well as those which were strictly in wholesaling of parts.

2) Members "agreed to disagree" about the issues which divided them and which might endanger the organization's existence. As John Malatesta put it, "If we tried to settle all the questions...it would destroy us, so we compromised by ignoring some of them."

An association of distributors was then officially formed. Its name, as suggested by Nussdorfer, would be the National Appliance Parts Suppliers Association (NAPSA). A treasury was formed by collecting a contribution of $100.00 from each person present. A future meeting date and place was set for the second weekend in May of that year, in Cleveland. The first officers were Ray Wixcey, president Lou Marano, secretary and Dave Vinik, treasurer.

Ray Wixcey agreed to draw up bylaws, and Lou Marano to produce an insignia. (Marano's nephew, Arnie Wilkins, came up with the idea of a flash of lightning in a circle with tabs.) Dave Vinik was assigned to get the new association incorporated in New York. And everyone was to go out and get new member prospects to NAPSA's "charter meeting" in Cleveland.

At Canton Wixcey said, "the foundation had been laid and the bear was beginning to awake...Little did the people involved realize the implication of what they had done and the far-reaching effects that it would have on the industry in general and on their own businesses specifically."

The Cleveland group did not include all the Canton participants, some of whom had been discouraged by the turmoil and compromises of Canton.

But many new faces took their place. Men such as George Evans, Clarence Lieber, Bill and Dick Fox, who had heard about NAPSA from Canton participants and from the representatives of supplier companies.

"The sales reps were the best conduit we had," recalls Marion Bloat. "They liked having important news to pass on, and most of them thought the association would be good for the industry and wanted us to grow."

Between 30 and 40 people representing 20 distribution companies gathered in Cleveland. After the hot debates at Canton, the Cleveland meeting turned out to be surprisingly peaceful. "It went as smooth as glass," according to John Malatesta. "We had a lot of new people, and the old issues seemed less important." The new insignia was accepted, and Ray Wixcey's draft of bylaws was also accepted. The thorny question of membership eligibility was, for the time being, resolved. The criteria that any wholesale parts distributor, who had at least three lines and did over $50,000 per year in parts wholesaling, was eligible for membership.

An agenda was outlined. So as to promote "the advancement of the parts industry," the focus was on:

1) Manufacturer's Relations: Members wanted better, more equitable relationships with their suppliers who were, at this stage, almost entirely non-OEM manufacturers. NAPSA must "promote and maintain a cooperative spirit between the distributors of appliance parts and their sources of supply." It must also help its members gain new lines.

An ad hoc Manufacturers Liaison Committee was created. Under the leadership of Bill Fox it became a standing committee and was renamed the Manufacturers Relations Committee in 1970.

2) Enlightenment: NAPSA members had a tremendous hunger for information and business education. Many were new to parts distribution and needed data on parts and on sources. If they were to grow, they needed to learn how to run their businesses more effectively and to take advantage of industry trends. A firm commitment to member education was a NAPSA hallmark from the beginning.  Almost from the very first day, members were gathering and analyzing data, passing the results on to the rest of the membership, and sharing their expertise with each other at national and regional meetings and through NAPSA's publications program.

3) Membership promotion: In order to carry on these tasks, and to gain recognition both for the members individually and as a group, NAPSA would have to grow. Under the vigorous efforts of Membership Chairman George Evans and Promotion Chairman Harry Gaghan, the initial charter membership of 20 companies would double by 1968. By 1970, NAPSA would expand to a nationwide network, and surpass APDA membership by 1971.

To carry on these tasks, the members at Cleveland formally elected NAPSA's first group of officers and directors:

President Ray Wixcey
Vice President Charlie Edwards
Secretary Lou Marano
Treasurer Dave Vinik
Directors included Al Cohen, John Malatesta, Dave Nussdorfer, Bob Stone, and Dave Zwelling.

The naming of Ray Wixcey as president surprised no one. Wixcey was seen as "the father of NAPSA." He was a natural organizer, a person with a talent for setting up workable systems. Equally important was his total commitment to the idea of the association and his certainty about its purposes and its task. It was not accidental that Wixcey was the first to write a history of the group. He had a feel for history in the making, and sensed the power of the marketplace, and of the common needs of individuals united by an organization. This vision was critical in enabling the divided group to achieve the compromises which made NAPSA's formation and early growth possible.

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