As we welcome 2019, the number one question small business owners need to be asking themselves is “how do we increase revenue and reduce cost? “
In today’s market, it is crucial to take advantage of services that help companies reduce the cost of daily operations. Staying ahead of competitors can be difficult when spending a large part of the annual budget for costly supplies and services. With MT Purchasing’s Group Purchasing Organization (GPO) you can receive pricing for supplies, equipment, and services available to large corporations. With over $100 billion in purchasing power, you can count on our contracts and supplier relationships to reduce your expenses.
What is Group Purchasing?
A group purchasing organization increases the buying power of its members by combining the aggregated volume of all of its member’s purchases. This enables a GPO to negotiate contracts based on the combined purchasing power of all of its members. This results in deep discounts that would not be offered to an individual small business. Bottom line is that you experience significant savings that go right to your bottom line to increase your profits or free up money to invest in your business.
How do GPO’s make money?
Commonly group purchasing organizations charge its members an annual membership charge or an administrative fee for each purchase. NOT MT PURCHASING! Our GPO is free to join and free to use. We receive a fee from our vendors so it is free to you. Plus, most of our members don’t have to change any of their ordering procedures or suppliers and there are no minimum order requirements so unlike big box stores, you don’t have to buy in large volumes to realize savings.
How GRoup Purchasing Puts You Ahead of Competition
Here are the top ways a group purchasing organization gives you an advantage over your competitors:
Joining a purchasing organization enables you to get goods at subsidized prices. The group bargaining power will lobby the suppliers to release goods at cheaper prices. This in return will enable you to stock the products at discounted prices.
This puts you ahead of your competitors who might not necessarily have gotten their goods at low prices.
Once you beat the competition and are able to price your products lowly, your business is on its way to thriving.
Better Quality Goods
The purchasing power of the group can as well enable you to get quality goods. It is possible that experienced dealers exist in your purchasing organization. These dealers will be able to push the suppliers to sell to you quality products as they are already aware of counterfeit products.
Being in such a group will cause you to get quality goods. Your customers, on the other hand, will always be happy with the quality of the goods you sell and increase your customer retention rate.
Ease of Access
Needless to say, sourcing for items as a group is a lot easier than doing it individually as a business. Whether you are running the business alone or with the help of a few employees, it will be easier to buy from the group organization.
The more easily you can access items for your business to restock the inventory the more assured you are that your stock is unlikely to be depleted. While some of your competitors have a problem restocking, you will be a step ahead to luring customers to your business.
A purchasing organization does not only source for products for its members but also look out for factors that may inhibit product supply and sort them out.
It could be disloyal suppliers or unfavorable pricing. These are some problems that businesses encounter and are unable to meet the demands of their customers. Being in a buying society will help you avert these and have a constant supply of your products.
The knowledge that a purchasing entity will sort out all your orders gives you the liberty to focus on other important aspects of your business.
Group Purchasing Maximizes Profit
The primary role of any business is to make profits. With a purchasing organization, you can source your products easily hence saving on several business overheads.
Instead of using middlemen who in the end may swindle you off your cash, you have a safe platform to make your purchases.
In the event that your competitors are not part of a purchasing organization, you will definitely be ahead of them in the profit ranking.
Optimized Resource Utilization
Did you know that your business greatly depends on the level at which your employees are committed to working on their roles in the business? Your employees are your main resource.
You might have several employees in your various department but unless each is of them is working on their roles, you won’t make much progress as a business.
One of the easiest way to avoid time wasting and maximize employees output is to optimize supplier management. This is greatly boosted by being in a purchasing organization.
This is because rarely will the business lack essentials needed to run its operations meaning that employees are well supplied with tools for delivering the work.
Mitigated Risks on Wrongful Purchases
Buying under a corporation gives you a better security in case your batch is wrongfully delivered or you need to change your order.
Dealing with a one-time supplier may make this process a bit tedious as;
- Work-relationship has not been established
- You do not have a body lobbying for your needs
- The supplier may not encourage or have a return policy in place
In a purchasing organization, you have a team handling such issues, giving you time to concentrate on your business.
MT Purchasing offers you over 300 suppliers and services such as Staples, Office Depot, Best Buy, Grainger, Cintas, Federal Express and hundreds of other top companies for all of your office supplies and equipment, furniture, electronic equipment and all of the support services that keep you running. You can view our full supplier list here.
Start building the financial security you need. Save with us and use that additional money to focus on the growth and long-term success of your company. MT Purchasing is the solution all business owners should be taking advantage of from startup to mid-size companies. Searching to find the best price is a thing of the past with MT Purchasing.