Group Purchasing Not Just For The Big Guy's Anymore "Small Business Owners Leveraging Spend Dollars"

As we are all aware, small businesses often cannot obtain the premium pricing that is available to larger companies and franchises. Why?... why because they do not purchase enough alone to warrant the discounts that larger purchasers can obtain. In addition, small businesses typically do not have the time or manpower to compare prices and manage negotiations.

What can be done to change this? The simple answer is to join forces with other businesses like your own, forming a small business purchasing group alliance. Group purchasing provides a way for smaller businesses to regain the time and money needed to grow operations and realize their full potential in the marketplace.

• Negotiating with vendors for cost savings on your behalf

• Soliciting bids and providing easy-reference price comparisons, streamlining your ordering process

• Inviting other businesses to join and increase the purchasing power creating better profits


The concept of group purchasing has existed for decades in different form in different industries.The practice initially started with buyers forming a consortium to strengthen their negotiation position using collective bargaining power and aggregate demand, and to save on miscellaneous transaction costs associated with product and vendor search and evaluation, logistics, contract management, etc. Over time, independent supply chain entities, both for-profit and not-for-profit, have appeared based on the same economic rationale of group purchasing. These organizations do not take direct part in product and payment exchange between buyers and sellers. They establish contracts with vendors on behalf of a group of buyers and act as intermediaries for managing contracts between the buying and selling parties. 

A 5% cut in procurement spending would result in a 20% increase in earnings before interest, tax, depreciation, and amortization. Cost management is going to be paramount for companies in terms of differentiating themselves. They have already slashed staff numbers and are increasingly reluctant to cut costs further in areas that might jeopardize their ability to benefit from the economic upturn.

Click here to visit our website

Views: 15


You need to be a member of InHouston to add comments!

Join InHouston


Click Here For Jobs Listings


This Month: [open]

Previous Recent Sponsors:

Cafe Monteverde

Featured Non-Profit:

Charity Cup

[more info here]


NEW Become a Sponsor

Latest Latest Activity on InHouston Feed Featured Blog Articles on InHouston

Add a comment to any profile you are viewing now

Working Capital

Need Cash To Grow?
B2B Company?
Request More Info


All Blog Posts


Latest Activity

Sanford H. Sellers updated their profile
Apr 15
Michael Kyle posted a blog post

How Top Managed IT Service and Support Providers Help Us?

Startups as well as established businesses always look for a highly reliable managed IT support Huston provider to meet their unique needs. These types of service providers offer a wide variety of services and solutions and you need to choose a reliable and reputed company that offers the best services at the most competitive prices.  High Quality Data Cabling Houston ServicesHighly reliable data cabling Houston service providers offer top…See More
Apr 5
Josie Ramirez liked Josie Ramirez's profile
Mar 21
Josie Ramirez liked Josie Ramirez's profile
Mar 21
Paul Emig updated their profile
Mar 9
Josie Ramirez updated their profile
Feb 21
Josie Ramirez updated their profile photo
Feb 21
Suzan Orr updated their profile
Feb 20




© 2018   Created by Eric Standlee.   Powered by

Badges  |  Report an Issue  |  Terms of Service