In 2006, Todd Waddle and Hai Bui were bankers working predominantly with residential home builders when they identified a need in the home building industry. They both worked with, or knew of, home builders that were market-leading companies in their own right and who simply did not possess the volume to negotiate pricing at the same level of many of the larger regional and/or national companies they competed with daily. Utilizing Todd's professional background in industrial distribution and Hai's residential construction finance expertise, they formed Affiliated Builders Group (ABg). By assembling a small exclusive group of market-leading home building companies and using the collective volume of the group, the partners believed they could lower direct material costs and increase profitability for the companies they would soon represent.
For more than a year, their "corporate headquarters" was an Oklahoma City bagel shop, where they built the infrastructure for ABg to level the playing field for the independent home builder. While developing their business plan on napkins was challenging, Todd and Hai knew one thing was certain: ABg would be successful if they assembled groups comprised of exceptionally well-run, financially sound, and highly committed home builders. They knew that a group would only be as strong as its weakest link and that the companies they would represent needed to be successful before involvement with ABg. The ultimate goal of ABg would be to position the group's volume to create a competitive advantage in the market. The builder's responsibility would be to direct their purchases to vendors selected by the group, evolving into a singular buying entity.
Soon after forming groups in Oklahoma City, Tulsa, and Kansas City, the residential construction industry nationally took a dramatic downturn. A difficult and declining market was the ideal time for ABg to prove it could help its members save on pricing and increase profitability. Today, many of those initial builders make it clear that by joining ABg their company was able to survive the downturn. Many years later, the groups established are strong and flourishing as cohesive buying groups and enjoying increased profitability.
Since 2007, ABg has added several markets, further strengthening the footprint of ABg as the leading home builder buying group in the nation. Other markets are currently being established or targeted for expansion. ABg now has a staff of 13 employees dedicated to its members.
ABg aligns its members with suppliers committed to removing cost redundancies and process inefficiencies from the traditional relationship. With an emphasis placed on market growth and driving out unnecessary costs, ABg members are able to realize a distinct advantage over their equal size competitors and level the competitive landscape against the large regional and national builders. We remain proud to represent the best independent home builders across the country.
For more than a year, their "corporate headquarters" was an Oklahoma City bagel shop, where they built the infrastructure for ABg to level the playing field for the independent home builder. While developing their business plan on napkins was challenging, Todd and Hai knew one thing was certain: ABg would be successful if they assembled groups comprised of exceptionally well-run, financially sound, and highly committed home builders. They knew that a group would only be as strong as its weakest link and that the companies they would represent needed to be successful before involvement with ABg. The ultimate goal of ABg would be to position the group's volume to create a competitive advantage in the market. The builder's responsibility would be to direct their purchases to vendors selected by the group, evolving into a singular buying entity.
Hai Bui
Todd Waddle
Since 2007, ABg has added several markets, further strengthening the footprint of ABg as the leading home builder buying group in the nation. Other markets are currently being established or targeted for expansion. ABg now has a staff of 13 employees dedicated to its members.
ABg aligns its members with suppliers committed to removing cost redundancies and process inefficiencies from the traditional relationship. With an emphasis placed on market growth and driving out unnecessary costs, ABg members are able to realize a distinct advantage over their equal size competitors and level the competitive landscape against the large regional and national builders. We remain proud to represent the best independent home builders across the country.
GE Appliances Partnership
"Louisville-based GE Appliances, part of Haier Group Corp., has formed a new partnership with Affiliated Builders Group, a buying group for the residential construction industry based in Edmond, Okla."- Louisville Business
Strength in Numbers
"Affiliated Builders Group, another home builders co-op, which is based in Edmond, Okla., has more than 100 builders that collectively boast 3,500 starts and over $1 billion in annual revenue, would be among the top 20 Housing Giants."- Custom Builder
Purchase Power
"Builders are challenged by more demanding building codes from municipalities, rising costs for oil-based materials and customers demanding more creative features in every home. In this environment it becomes necessary to eliminate inefficiency, waste and duplication; it is also critical to 'buy right'."- Covenant Homes
Edmond-based Affiliated Builders Group helps homebuilders pool resources
"The idea behind ABg was simple: Put the power of numbers to work for homebuilders. It's a concept familiar to their vendors and suppliers, who routinely pool their resources in buying groups across the country, but it was new territory for homebuilders."- NewsOK
