Buying Groups

**eyemanflying** · 07-23-2009, 08:31 PM

I'm just curious to hear optiboarder's opinions and past experiences when dealing with buying groups. It seems as though they are becoming more 'self serving' and greedier than before and not sharing the 'full' amounts of discounts and rebates back to their members.

Anyone?

**Johns** · 07-23-2009, 08:35 PM

Nay!

**Fezz** · 07-23-2009, 08:36 PM

Originally Posted by Johns

Nay!

Double NAY!

**Fezz** · 07-23-2009, 08:37 PM

I look at them sorta like unions.

They had their place and time, but now is not the place, nor time!!!

:cheers::cheers::cheers::cheers:

**eyemanflying** · 07-23-2009, 08:49 PM

I agree...nowadays, most companies offer the same discounts to individuals anyways. Other than extensive product/brand range through a single account, centralized invoicing, and one statement, what else is there?

**rbaker** · 07-23-2009, 09:00 PM

While you may wish that the buying group has an altruistic motive and business model it should be realized that their true purpose is to make a profit. A savy business person should be able to negotiate as good or better discount on his/her own and cut out the buying group. Buying groups have recently been under increasing financial pressure as more and more of their accounts become slower and slower to pay.

**ADO** · 07-24-2009, 10:26 AM

Dick,
Where do you get your information that buying groups are under increasing finacial pressure?

Jobe
ADO Buying Group

**Johns** · 07-24-2009, 11:30 AM

Originally Posted by ADO

Dick,
Where do you get your information that buying groups are under increasing finacial pressure?

Jobe
ADO Buying Group

Who isn't?:hammer:

**ADO** · 07-24-2009, 11:32 AM

Originally Posted by Johns

Who isn't?:hammer:

ADO Buying Group. :hammer:

**Now I See** · 07-24-2009, 04:33 PM

Never used a buying group. So far, with many thanks to my fellow O'Boarders, I've been able to find companies that are willing to work with me. The one advantage I can see is getting one bill...only then it's one BIG bill, and not the nice smaller ones that seem more managable. :D

I could see how a buying group might be a great place to turn for someone just starting out, as they have already negotiated the discounts and have access to many companies.

**Johns** · 07-24-2009, 05:25 PM

Originally Posted by ADO

ADO Buying Group. :hammer:

Well, I'll speak for myself. I feel the pressure, which is why I don't use a buying group. I'll keep the extra 2-3% thank you.

**Jacqui** · 07-24-2009, 05:41 PM

Here at the lab I find I'm just as well off financially not using one, at least not any that I've seen so far.

**eyemanflying** · 07-24-2009, 05:51 PM

Originally Posted by Johns

Well, I'll speak for myself. I feel the pressure, which is why I don't use a buying group. I'll keep the extra 2-3% thank you.

Up here it's creeping near 5%. That's quite an admin fee.

**ADO** · 07-27-2009, 08:28 AM

Originally Posted by Johns

Well, I'll speak for myself. I feel the pressure, which is why I don't use a buying group. I'll keep the extra 2-3% thank you.

Johns,
No problem... I respect your decision.

My point was to find out where rbaker gets his information to make such a broad statement about buying groups. As someone who runs one of the largest buying groups even I don't have the information to make that statement.

**eyemanflying** · 07-27-2009, 09:58 AM

Originally Posted by ADO

Johns,
No problem... I respect your decision.

My point was to find out where Eyemanflying gets his information to make such a broad statement about buying groups. As someone who runs one of the largest buying groups even I don't have the information to make that statement.

Broad statment??? It's public knowledge. You indicate that you run one of the largest buying groups around, yet you don't know???

It's either A or B here...

A - You're completely out of touch with your competitors (which I highly doubt is the case)

B - Self preservation (this I understand)

**ADO** · 07-27-2009, 10:27 AM

Eyemanflying,
Sorry, I put your name in when it should have been rbaker. My fault. Too much going on this weekend to be typing this early on a Monday.

Buying Groups for the most part are not publicly traded so there are no reliable ways of getting their sales information. We can speculate on who is doing well and who is not, but for the most part it is just that.

**rbaker** · 07-27-2009, 11:52 AM

My statement "Buying groups have recently been under increasing financial pressure as more and more of their accounts become slower and slower to pay." may be anecdotal but it is based on the observation that nearly all of my old friends who still own eye care businesses and no longer use buying groups for a multitude of reasons.

It is my personal belief that the buying group is a dying business model. First of all, all of the "biggies" can negotiate directly with the manufacturer/vendor for better pricing. And, the internet will allow the optician to both order and pay with a single on-line transaction. The supply chain is evolving. It's getting squished.

What value does a buying group bring to the table?

**eyemanflying** · 07-27-2009, 06:06 PM

Originally Posted by ADO

Eyemanflying,
Sorry, I put your name in when it should have been rbaker. My fault. Too much going on this weekend to be typing this early on a Monday.

Buying Groups for the most part are not publicly traded so there are no reliable ways of getting their sales information. We can speculate on who is doing well and who is not, but for the most part it is just that.

Phew!