What does the group buy?

, also known as a collective purchase, is to buy a group access to shopping, which requires several consumers to approach a single seller in the hope of buying specific goods or service for each of them. The aim is to take advantage of the power of purchase so that consumers and the supplier or supplier benefit from the transaction. There are a number of ways to structure a group shopping situation, from an informal one -time effort by a collection of stakeholders to the creation of an ongoing consortium that acts as a broker for members of the group in ensuring ongoing discounts for specific goods and services.

An informal example of a group purchase could not be anything but a collection of neighbors who decided to approach an operator of a local vegetable stand with a specific action plan. In exchange for the operator, it reduces the cost of a tomato basket by ten percent, each neighbor in the group agrees to buy two baskets. Assuming the purchase of a group is involvedTen neighbors, it means that the operator of the stand is able to quickly sell 20 baskets of tomatoes by offering a small discount on everyone. Neighbors have the advantage of obtaining negotiations that individual consumers do not, while the operator is able to enjoy one transaction that significantly improves sales for this day.

In some cases, buying a group can be on a much larger scale. During the 90s of the 20th century, the development of retail consortia, which allowed member companies to combine their purchasing power and get discounts from specific products for products such as office supplies, telecommunications services and even courier services. The approach was relatively simple. Authorized representatives of consortium would conclude contracts with various sellers who included discount prices for different services of the service, discounts on the amount of purchase of the volume represented by members of the consortium.

discounts locked with theseThe groups were usually higher than anything that members could negotiate themselves. At the same time, the suppliers were able to think of the difference as a result of the purchase of volume and also to have the supply of goods and services of many known companies, which could be very useful in finding other clients who did not participate with the consortium. The final result was the situation mutually advantageous for all involved.

Whether it is used as a strategy with a local group or on a massive scale, including the main corporations, the concept of the purchase group only works if the buyer and sellers get some type of benefits from the transaction. As long as the buyer saves money and sellers are able to generate profits that are sufficiently attractive to make the agreement useful, there is a chance that both sides will be satisfied with the result and will remain open to a similar business in the future. If members of a group or team do not buy in the volume that originally promised, there is a great chance that the supplier orThe seller refuses to participate in a later transaction.