In today’s market, being able to buy at a fair price is now mandated in law (read more). In the recent past, when negotiating with suppliers, the promise of volume purchases gave groups buying power to leverage their unity, in effect, through collective muscle, strongarming suppliers. Those days are (legally) over. Groups that have not yet read the memo, still use this archaic tactic — illegally — to attract new members and reward existing members through the sharing of rebates. There has been enough written on that topic, so I will swiftly move on to the crux of this article.
So, the question must be asked: Are Buying Groups irrelevant? In the form of using traditional tactics by leveraging buying power/muscle/volumes and sharing a portion of the rebates with their members — YES — that model has no future and should be considered extinct.
If aligned with the current competition commission act of receiving a better price based on efficiencies (not volumes alone) and giving 100% of rebates BACK TO MEMBERS, then Buying Groups will play a crucial and important role in the future of retailing.
One might ask how Buying Groups will survive if no rebates are retained, as it is their sole form of revenue. They need to modernise.
So, why join us? The article title teases a solution, adopted by THE modern BUYING GROUP (TmBG). With sales being the lifeblood for any business, TmBG has aligned itself with the current competitions commission act and positioned itself to offer the following:
· Generate Sales Revenue for members
· Give 100% of rebates back to members
· Be 100% transparent
· Still ensure the right buying price within the new laws
· Long term solutions for growth, or even exit strategies, for your business/es
THE modern BUYING GROUP uses a ‘first principles’ approach which leans towards being a sales driven, modern BUYING GROUP. Our efforts as a Buying Group are so intertwined with sales, that we have even considered a name change to THE modern SALES GROUP… However, it may be too soon for the market to adapt to that vision!
TmBG only seeks to attracts retailers that fully understand and are aligned with this approach. If you are a retailer receiving a portion of the rebates your Buying Group deems fair —whilst adding no tangible value — then consider having a ‘no obligation’ discussion with The modern Buying Group.
We’ll share with you where we see the future of modern retailing has moved and let’s see if there are genuine synergies – There’s nothing to lose in talking.
