Making More Money with Less Effort and No Outlay of Capital author.

 Making More Money with Less Effort and No Outlay of Capital author.

A company's bottom line improves as its expenditures on goods and services decrease. When a company is on a tight budget, how can it find ways to save money on goods and services? You have my straightforward answer. Boost the buying power of each company by joining forces with other small firms. It could be costly, time-consuming, and resource-intensive to put plans into action to establish a buying group. These purchasing group components are often in short supply among small company owners.
The idea of purchasing groups consisting of numerous small and medium-sized enterprises is not new. Just in the past several years has the concept's implementation been available. There has been a complete and utter collapse of the national buying organizations that emerged throughout the last five years. A lot of these buying groups failed, and I'll explain why later on in the piece. Members of one of the few remaining buying clubs can take advantage of steep discounts offered by 37 different national vendors according to an alliance that these groups have created. One of the first national buying groups to do away with membership dues entirely was the Hospitality Buying Group. All of the national buying groups that are part of the newly formed Hospitality Buying Group Alliance can join for free for life. The time it takes to compare prices across alliance vendors and what members are now paying is the only investment members' businesses make.

Surely you must be thinking that this is all a hoax by now. They must be making a killing if the Hospitality Buying Group Alliance is giving out lifelong memberships. There can be no other source of income other than merchants if members do not contribute financially. On every purchase made by a member of the buying club, the suppliers pay a commission to the organization. The sellers don't take any chances because they only pay the commission if they receive payment from the members of the buying group. In order to provide the business members with the maximum discounts, the commissions are kept relatively low.
When consumers use their credit cards at participating businesses, some of these corporations, like American Express, give a discount or a percentage back in the form of cash. Credit card savings of 2-5% is nice, but shopping in bulk can save you 10% to 50% more money. Only the alliance vendors who the buying group members have explicitly requested will they be contacted. Additional vendors are interested in providing their services to members of the buying clubs as they grow in popularity.
Why don't most buying groups succeed if the idea behind them is so great? The startup costs for most of the unsuccessful buying groups ranged from several hundred thousand to well over a million dollars. Worse yet, they have substantial operating costs. During the early stages of the buying group's existence, when there are limited suppliers available to prospective members, this is taking place. They need to charge $500 to $10,000 per year to join the group so they can stay in business. Members can only anticipate yearly savings of a few thousand dollars due to the small number of vendors. Joining a buying club is a big commitment for many small company owners, and they aren't sure it will pay off in the end. As a result, hardly many memberships to the buying group are sold. A reduction in the sales force is a direct outcome of the purchasing group's inability to pay their operational expenses. The buying organization eventually goes out of business as a result of reduced revenues.
It only took a few thousand dollars and thousands of man-hours from a single or couple of people to launch each of the now-thriving national buying groups that comprise the Hospitality Buying Group Alliance. In the beginning, they only needed a few hundred dollars per month in operational expenses, on top of the many hours of labor put in by the proprietors. Profits were re-invested by the buying organizations as they expanded. The operation cost of the purchasing group is decreased by the utilization of technology. With this method, the purchasing group is able to achieve financial success. Prospective members should rest easy knowing the buying group has a solid foundation thanks to this information.
Since no coalition of buying groups has ever been created before, this is a historic moment in the history of buying groups. The moment to join the buying group alliance is now because of the expanding number of participating groups, the inclusion of free lifetime membership, and the complete freedom to choose any number of alliance vendors. At http://www.hospitality-buying-group.com/, you can find a list of all the national vendors that are part of the HRG Alliance.

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