If you’re in the pool industry, you’ve likely heard of a buying group or group purchasing organization (GPO). But what exactly is a GPO and how can it benefit your business? A buying group offers products, goods, or services at significantly reduced prices on the condition that a minimum number of buyers will make a purchase. It is essentially a group of individuals or businesses that band together to negotiate more competitive pricing from vendors.
If you’re a member of Costco or Sam’s Club, you’re part of a buying group or rather a buying club. Being a member of Costco or Sam’s allows you to purchase bulk quantities of the products you love at a reduced price. Similarly, buying groups in the pool industry allow contractors, builders, retailers, and servicers to enjoy benefits like reduced pricing and the convenience of bulk purchasing on inventory.
What Are the Advantages of Joining a Buying Group?
So what exactly are the perks of joining a buying group? Becoming a member of a GPO is an excellent financial investment. Membership can save you thousands of dollars annually in the form of vendor rebates, automatic reimbursement plans (ARP), and heavy discounts on items your business needs. Plus, some buying groups, including United Aqua Group (UAG), offers stock shares so their members can build wealth over time.
There are some non-monetary benefits that buying groups offer as well. GPOs streamline the entire buying process to save you time and headaches. For example, buying groups handle ordering and billing all in one place, so you don’t have to deal with dozens of vendors. Additionally, GPOs offer greater efficiency and inventory control. When you join a buying group like UAG, for example, you’ll no longer have to worry about product availability or price at distribution.
Another added advantage is that buying groups offer a built in network of other like-minded professionals in the pool industry. This allows you to create helpful business connections and expand your professional network.
Are There Any Disadvantages of Joining a Group Purchasing Organization?
As you’re reading this, you may be thinking this is too good to be true, which is why it’s also important to weigh the possible drawbacks of joining a buying group as well. One of the biggest disadvantages that GPO members face is that most buying groups won’t work with every supplier on the market. In simpler terms, if you have a preferred vendor that isn’t affiliated with your buying group, you won’t be able to use your GPO discounts with them and may have to opt for another vendor to purchase at a discounted rate.
Additionally, some buying groups require involvement and participation from their members as part of the deal. So just be sure to thoroughly research any buying group before joining to ensure you are ready to make the commitment.
What Does It Cost to Join a Buying Group?
Like Costco and Sam’s Club, most buying groups are funded through membership fees. These fees can be modest or quite pricey depending on the size and scope of the organization, so it’s important to be informed about what you’re signing up for before joining. Some buying groups also require a minimum order amount, so don’t forget to read the fine print and rules of membership before signing up.
Get Started–Join a GPO Today
If a buying group seems like it would benefit you or your business, getting started is easy. Simply determine which group is best for you, apply, and start saving. Chances are, once you’ve joined you’ll be thanking yourself that you did.
If you aren’t sure which group is for you, consider United Aqua Group. We help our members buy better and build equity in the process. On average, our members save up to $180,000 a year or more on purchases. Check out our website for more information on becoming a member of UAG.
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