Your Thoughts On Buying Groups

**LaurieC** · 01-06-2004, 04:48 PM

What are the pros and the cons? What do you expect, receive or not receive? If you administrate one, what are the difficulties you encounter? If you are a vendor servicing one, what do you see as the pros and cons? In general, what is the ideal buying group from the supply and vendor side?

**BobV** · 01-07-2004, 09:43 AM

Laurie,

I don't use buying groups. I have in the past, and this is what I have seen:

With a group, you get predetermined discounts which can rival the discounts if you went direct. But, when you pay the 3-5% servicing fee, your discount definitely has been cut.

Credits take too long to be posted to your account as compared to dealing direct.

If an optician does not want to handle the frame accounts, hire someone willing to do it. It brings another person into the work force and who knows, this person may be a "wheeler-dealer" and get some better discounts from the companies that really want your business.

Bob V.

**PAkev** · 01-07-2004, 12:11 PM

As a small office and a basically one man band operation, I find BG's (buying groups) useful. BG's enable us to offer several frame lines by recognizing a modest discount rather than just one or two lines with their full discount. I write one check for all my monthly frame purchases to one BG and another check for all my lab purchases to another BG. Therefore I can be more commited to servicing our patients optical needs and not worry about having to sit down to write out a check every time a bill comes in from one of our vendors.

However, it is easy to become complacent with the extra time a BG affords. I have found that good record keeping is a MUST so that you receive proper credits and frame orders are not exploited. Our BG's are very fair by enabling us to short pay any outstanding credits we may have. BG's do require a strong cash flow since all bills are due at the same time and therefore leave you running on fumes sometimes.

My .02
Kevin