Promotional Product Buying Groups Explained
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Webinar: Buying Groups Explained Presented by: Philip Shehadeh
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Transcript of Promotional Product Buying Groups Explained
Webinar: Buying Groups Explained
Presented by: Philip Shehadeh
Topics We’ll Explore!
• What is a buying group?
• What are the different types of buying group?
• What’s in it for you?
• Who is not a good fit?
• What are the possible disadvantages?
• What are your options?
What is a “Buying Group”
An organization that leverages the purchasing power of a group of distributors to obtain discounts from vendors based on the collective buying power of the group…
How Do Buying Groups Help?
Depending on the group, some offer the following services to their members:
• Order Financing / Accounting & Back Office Support
• Sales and Marketing
• Brand Identity / Equity
How Do Buying Groups Help?
• Web Technology
• Graphic Design
• Training & Professional Development
• Payment Advance Programs
What’s in it for You?
• Sourcing, financial and graphic design support means you can focus on selling
• Better pricing from suppliers can make you more competitive
• Network of supportive distributors is particularly useful for newcomers to the industry
What’s in it for You?
• Without cash flow concerns, you can pitch for large volume jobs
• The brand name may open doors for you with suppliers and potential clients
Who is Not a Good Fit?
• If you’ve already negotiated better pricing with your key suppliers
• If you have no challenges with cash flow
• If you can efficiently source products
• If you have reliable, affordable graphic design resource
• If you prefer to keep all of your revenues!
What are Your Options?
We’re taking a look at five very different buying groups, or
‘distributor support networks’
• Not a Franchise
• Brand Independency
• Non restrictive agreement
• Print Division
• Sales and Marketing Consultant, Cliff Quicksell
What it Costs:
Affiliates own their own company and pay a flat transaction fee depending on sales volume to IPU
“Since our affiliation with iPROMOTEu, our business has more than doubled because I have the ability to concentrate on selling and not contacting vendors for status or checking to see if cash flow allows us to consider the job.
We have been able to bid on large volume jobs with confidence know we have both the buying power of iPROMOTEu and the ability to fund the orders.”
Jamie Bradford Lopez from Po’Folks Promos
• $500 million in purchasing clout and cash flow support
• An appointment setting team
• Company stores
• Free credit insurance
• A $4 million sales and marketing fund
• A sales recruiting department to help build your team
• A North American Major Account team to help you win large accounts
• A leadership team whose founder built a giant distributorship of his own
• 135 Million Dollar and Multi-Million Dollar Club members
“Proforma has allowed me to land larger prospects, mainly by giving me the power of a 400+ million dollar organization. The resources they provide are essential for my success.”
-Dick Gray
“Better pricing makes it easier to quote, especially in situation where we need to bid for a project. We also get much better customer service from the suppliers.
“We are currently bidding on a large overseas project –Proforma’s name and overseas sources makes it so much easier.”
-Anonymous Proforma Member
Pay Plan:
There is a one-time flat fee to join Proforma as well as to receive their start-up “marketing kit.”
Members pay monthly royalties on a declining scale of sales.
There is a small fee for the marketing fund
Technology fee of $100/per month.
• Reduced administration time• Financial support and credit lines• Better pricing so you can compete with bigger
distributors and still maintain an acceptable gross profit
• A means of maintaining the business and making extra money while seeking a buyouy
• Reduced overheads as no need to have a graphic designer / admin staff
• Best in class marketing and technology services• Keep your current company name
“ After working with another distributor, I’m really happy to be with Vernon now. I am recognized and rewarded for what I bring to the table as I focus on growing my business, and I’m making a lot more money today.”
-Luke Sigle
Pay Plan:
No Franchise fee or owners fee
Commission-based (sales volume based)
Most services provided at no charge to a minimal fee.
• Stability• Up to 65% profits paid• Cash Flow - Profits paid up front at time of order entry• Profits paid daily via ACH bank wire transfer• Protection against product liability and customer bad
debts• Buying leverage with suppliers• Annual cash bonus and awards• Preserve and keep your identity and your customers• No binding contracts or agreements - no monthly fees
or costs• Lucrative referral program
“My affiliation with Kaeser & Blair means I can focus on the value I add as a consultant, not on product sourcing, artwork re-touches or proof approvals.
“Everything I can outsource cost-effectively, without compromising on quality, I do; I’m free to be a creative problem solver, not a product-pusher.
“I pay K&B a commission for every order I source through their services; there are no other fees.”
-AJ Ogaard
Pay Plan:
Sliding commission plan that pays as much as 65%
• Preferred pricing and benefits from over 90 top suppliers
• Substantial discounts on popular industry tools and services
• Quick service and discounts on vector and digitizing needs
• Support from experienced industry professionals• Industry Training• Monthly interactive teleconferences• Access to sales strategies and prospecting
tactics
“I’m so happy to be part of AIM… Finally I don’t feel like I am on a deserted island.”
-Desiree
“AIM is great! Partnering with the best suppliers in the industry to provide them with bigger sales figures and preferred pricing for the distributors makes perfect sense.”
-Rich H.
"AIM membership has helped me with ideas from other distributors, and with automatic lower prices from vendors. Membership pays for itself several times a year, minimum. I love having a group of peers we can go to with problems, asking for advice and creative solutions." - Tim M
Pay Plan:
-$59/month.
-You are not locked into any term contract with AIM.
Who To Contact?
iPromoteuBob [email protected]
AIMJamie [email protected]
VernonDave [email protected]
ProformaArikka [email protected]
Kaeser & BlairKurt [email protected]
Thank You
• Ultimately, all organizations mentioned in this webinar benefit from your success by retaining your business. Because of this, you can expect them to have a strong interest in improving your business.
• Each group has a relationship with Customer Focus. Please contact us to hear more!
