How Joining a Buying Group Can Make Independent Electronics Dealers Price Competitive

Rate this item
(0 votes)
 
One of the biggest challenges for independent electronics dealers is competing on prices, due to the fact that their smaller orders do not command the same types of discounts as the larger orders placed by big box electronics stores. An effective solution to this challenge can be found by joining a buying group that aggregates orders from their members to deliver a variety of financial benefits. These benefits include:
 
* Discounts on larger order sizes - A buying group combines and builds orders from their members to reach the same volume purchase discounts as the largest buyers in the industry. These discounts occur at the time of purchase, through volume based rebates, and for accumulated orders over set periods of time.
* A buying group can negotiate better lending terms - Terms negotiated by a buying group can be stretched out over time, financed at lower interest rates and include discounts for paying the loan off before maturity.
* Centralized tracking of rebates and other credits - Rather than trying to stay on top of various rebates and purchasing benchmarks from each vendor, the buying group centralizes the tracking of credits for a simplified solution.  
* Buying groups allow independent electronics dealers the chance to buy limited release products - Volume purchasing power can enable smaller dealers access to products in limited release, a benefit that can prevent existing customers from going to larger competitors to purchase hot new products.
* Single payee billing and invoicing - Rather than paying multiple vendors for product purchases, a dealer receives a single invoice from the buying group and makes one payment. 
 
Joining a buying group can solve numerous financial issues for independent electronics dealers. With volume price discounts, better terms, simplified rebate tracking and centralized billing, even the smallest dealers can operate like the biggest players in their industry.