A buying group in Tennessee is a collection of small businesses that work together to negotiate better deals with vendors. It is a wise way for business owners to control and minimize their costs.
A business owner unsure about joining a buying group may have heard myths about group purchasing organizations that are causing hesitation. Debunking these myths can help entrepreneurs take advantage of all the benefits buying groups can provide.
They are not worth the effort
Companies that engage in a collaborative culture can benefit greatly from buying groups. In the health care industry, for example, buying groups can greatly decrease the price of medications and medical products for hospitals, doctor’s offices, nursing homes and more. The Federal Trade Commission states that buying groups enhance the quality of the products and services delivered while lowering operating costs in health care.
They are too hard to start or maintain
Business owners do not have to figure out how to start, join or manage buying groups alone. Regardless of a member’s role in the group, a buying group lawyer can help set up the group and make it work. A lawyer can execute business contracts and help with price negotiations. Other organizations, such as Energy Star, also offer assistance with group purchasing in certain categories, such as energy saving.
Companies in a buying group will only get stock products
It is a common misconception that joining a buying group will decrease the quality or variety of supplies a business receives. While it is true buying groups can obtain standard supplies, they also have access to more robust categories of goods and products. Buying groups can serve all types of industries, from Fortune 100 companies to manufacturing.
A buying group can be easy to join or start with help from the right organizations.