H&H Purchasing Services | Buying Groups | Group Buying Organizations

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How Do Buying Groups Measure Up?

Some of our clients have asked us about "Group Buying Organizations" which offer businesses the ability to participate in "Buying Groups." Few understand these buying groups or what they offer. We do. We think it best to spell out the pros and cons for you so that you can make an informed decision.

Buying Groups Generally Focus On Huge Industries.
Most buying groups focus on health care (hospitals) or hospitality (hotels). Small businesses and summer camps represent a tiny fraction of their business. Their product lines and bid pricing are typically tailored to these large industries with some potential overlap for the smaller customer.

H&H, which is a purchasing consultant, is completely focused on summer camps and other small businesses. We bid products that camps and small businesses use and we negotiate hard for the products they use most.

Buying Groups Are Paid By Their Vendors.
H&H offers its clients undivided loyalty. Our one and only goal is to negotiate the best prices for our customers. We don't make deals with our vendors at our clients' expense.

Buying Groups Offer One Vendor Per Category.
Buying groups negotiate pricing with a single vendor in order to maximize the fee the Buying Group receives from that vendor.

H&H nearly always bids with multiple vendors. H&H always offers incumbent vendors the chance to bid. We don't automatically substitute a new vendor without giving the existing vendor a chance to keep the business.

Buying Groups Offer A Single Service.
In addition to great pricing -- usually better than that offered by a buying group -- H&H offers planning, consultation, professional education opportunities and other value-added services. Over the past several months, H&H offered well-attended menu planning conferences in Boston and Chicago. Every day, we answer our client's questions about all aspects of their purchasing.

Buying Groups Don't Always Monitor Pricing Compliance.
Buying groups conduct random price checks to insure bid compliance. They don't check every invoice.

H&H does. That's right, H&H checks and makes necessary corrections to every single invoice.

With A Buying Group, One Bid Fits All.
Don't even think of calling a buying group to add an item to your bid. After all, it's not your bid, it's everyone's. Every client has its own H&H bid, to which new products can be added and priced out at any time during the purchasing cycle.

Buying Groups bid on products their large clients need.
H&H bids on products that camps, offices and other small businesses need.