Associated Carpet Group
Contact: Richard Moore
T 01942 825520
Protect your business with strength in numbers!
Buying groups in the flooring industry
Bond Retail Marketing
Contact: Carl Harris
T 01527 270775
Metro Group (Carpet 1st)
Contact: Jill Coward
T 01204 393539
Flooring One
Contact: Peter Karra
T 0121 683 1426
Greendale Carpets & Floorings
Contact: Rob Harding
T 01432 852000
SMG Group
Contact: Mike Reed
T 0118 932 3832
Buying groups have been a highly successful feature of the floor retailing scene in the last decade or so, giving independents the extra edge they need to compete effectively with the retail park chains.
More than 1,500 retailers are now members of one of the several buying groups which operate in our sector and the numbers are slowly, but steadily growing.
While the benefits of bulk buying power are self-evident, the resistance to the buying group concept among non-members appears to be centred on fears of surrendering some control to a committee – and most particularly compromising long-established relationships and negotiated terms with current suppliers.
The bottom line is the bottom line.
A retailer selling across a broad range of products is likely to improve margins within a buying group – but you don’t need a leap of faith to join up. Ask the buying groups for answers.
Scroll down for
- Picking the right buying group
- The key benefits you may need
What's right for your business...
How to decide whether to join a buying group – and which one…
- Evaluate all buying groups
as they all work a little differently
- Talk to the main marketing contact and/or a member of the committee
- Get a list of members and call up two or three for a ‘real-world’ view
- Establish your territorial exclusivity – where’s the next nearest member of each buying group
- Ensure you understand the financial arrangements, any fees that would relate to your membership, how the bills are paid and whether your fees are refundable if it doesn’t work out. And especially, how your accounts with suppliers are managed.
- Ask the buying group for a consultation to
estimate your potential savings
- Review all the extra benefits and services to see what you would actually use
- Check out the product ranges offered including the UK/European mix
- Explore the
own-label options and how this works for merchandising including point-of-sale
- Ensure you understand any rules that may limit your flexibility to run your business the way you want
The key benefits to explore...
Increase
margins
- Group purchases to get beneficial rates
- Rebates
- Exclusive higher-margin products
- Special promotions and campaigns
One of the key reasons to join a buying group is to benefit from the discounts they negotiate as a bulk buyer from manufacturers.
The way discounts and rebates are passed on to members varies between groups so make sure it’s absolutely clear how this will be done. You’ll need to work out how this compares with discounts you have already negotiated locally with preferred suppliers.
Access professional services
- Business and financial services
- IT and internet support
- Training and workshops
- Professional bodies
Some buying groups offer an excellent range of other services which may be valuable to your business. Financial services include invoice factoring, credit, loans and insurance. Some of the more sophisticated groups offering marketing packages, software systems to help you run your business operations and customised websites ready to use. Relationships with professional and training organisations can also offer discounts.
Own-label for choice and protection
- Protection from price comparison and internet shoppers
- Exclusive ranges
- Branded POS and displays at competitive prices
- Full marketing packages
'Own-label' marketing is a critical part of today's commercial environment and gives you a flexible opportunity to avoid many of the threats from online competition.
Often you can choose just how much own-label you use, how much is branded to your name, your buying group's identity and/or the original manufacturer. Some retailers will just select a few ranges to re-brand and market exclusively, others may give their whole store over to the buying group brand.
Full marketing support can be available including storefront, window dressing and signages as well as cost-effective point-of-sale, ticketing and literature.
Network with other independents
- Members-only exhibitions with preferred manufacturers
- Regular meetings and supplier presentations
- Regional workshops
- Helpline
A lot of retailers enjoy the buying group environment of being independent but not alone out there on the High Street. Groups hold regular meetings and some have their own trade shows, regional meetings and workshops to help you develop your business. The network gives you someone to call when you need advice on, for example, an unusual installation, a technical consumer complaint, legal issue or business dilemma.
