There is one simple reason why big-box stores such as Walmart and Target can offer products at cheaper prices, volume.
Manufacturers usually supply products directly to large retailers, cutting out the middleman. This drastically reduces the cost and allows large retailers to offer unbelievable discounts. The practice of buying in volume also gives large companies a lot of leverage in terms of pricing, packaging, and marketing.
While the buying in bulk works out for the large companies, it leaves little room for small independent businesses to compete. There is no way a small retailer or an independent professional could get the same discounted price or have the same level of leverage over manufacturers.
This is where a buying group comes in. A buying group comprises of many small businesses usually belonging in the same industry and niche. Representing the interests of all it’s members the buying group leverage of a large organization and can negotiate better pricing and services for the entire group. In other words, it’s a group of small businesses acting as one to leverage better deals from vendors.
Advantages of Buying Groups
Savings on Inventory
Vendors may give you a special rate every now and then, but it usually pales in comparison to the discounts and rebates you get when going through a buying group. As mentioned earlier, group purchasing organizations or buying groups buy products in bulk for all it’s members, this allows them to get discounts that are almost never made available to individual businesses
Peer Programs
Part of growing a business is interacting with others who are trying to achieve a similar goal. Buying groups allow business owners and professionals to network and engage with other members at special events.
Staff Training
Depending on the type of buying group, members can get access to a number of additional benefits apart from special pricing. One of the most common resources is staff training programs to hire, retain, and educate staff members. This helps businesses to setup a team of professionals who can work towards achieving the company objectives.
While retailers and other businesses use buying groups to their advantage, medical professionals also rely on buying groups. Buying groups can help doctors set up their clinics, provide staff training, and get exclusive discounts on medical supplies.
In this post, we take a look at how buying groups can benefit medical professionals.
Why Medical Professional Join Buying Groups?
Medical professionals who run independent clinics and need regular supplies utilize buying groups to increase their profit percentages. For example, eye doctors who need a regular supply of lenses, frames, eye drops, and other medical supplies often join PECAA, a leading optometry buying group.
Apart from getting access to special pricing and getting a discount on logistic costs, medical buying groups also help doctors educate themselves about the latest trends in their respective fields. Buying groups for doctors also organize events and seminars which allow medical professionals with the same specialization to network with their peers.
Buying groups also provide support to doctors when they are trying to set up a clinic by giving them access to vendors and services involved around turning a space into a business. Buying groups for medical professionals also get access to resources to train staff members and tackle the everyday challenges of running a business. Many medical buying groups also give members access to specialized software packages for billing, logistics management, accounting, and others.
Medical professionals can also continue their education by getting access to special educational programs. Optometry buying groups such as PECAA also has student membership programs to help newly graduating students to network with practicing optometrists and get a head start when starting their own practices.
What About the Membership Fee?
Optometry buying groups and other buying groups for doctors require members to pay a monthly or yearly fee. The membership fee totally depends on the buying group and the services opted by the particular member.
However, the fee is structured in a way that allows enough room for practicing doctors to save more money than they pay in membership costs.
Eye care specialists can easily recover the money they spent on membership fees by getting discounts and rebate on lens, frames, medical equipment, and other supplies. That’s apart from the support they get for setting up their business and getting valuable resources related to HR management and training.
For most medical professionals, the cost of the membership gets recovered in discounts alone. The other benefits and special events are add-ons that help them grow their practice.