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Buying using Group Pricing/Sales

  • avatar

    by: sgr4679
    SaleHoo Senior Member
    100 posts

    Buying using Group Pricing/Sales

    Posted 25 Sep 11 8:49 am.

    Hi All,
    First of all I'm not sure if the correct form is Pricing or Sales that's why i wrote them both.
    I'm interested in finding as much info as possible on the buying method "group sales".

    The basic idea which i know is that a few people Join forces and buy an item in a better price. My questions are:

    1. Does anybody know any marketplaces or websites that offers group Pricing to his customers?
    2. How do Group Pricing really work, i mean the entire process from A-Z ?
    3. Links for good articles or an e-book on the subject will be much appreciated.

    Thanks a lot
  • avatar

    by: fudjj
    SaleHoo Staff
    2969 posts

    Re: Buying using Group Pricing/Sales

    Posted 25 Sep 11 8:02 pm.

    Group buying is all about getting getting volume discounts, the more money the group has to purchase with will usually translate into a lower cost per item. Wholesale suppliers are what you would be looking for, and I am counting genuine liquidators in that as well.

    How does it work, there really isn't any set structure. It essentially comes down to an agreement within the group.

    My tips:

    Number one - Keep the group as small as possible to ensure larger profits

    Number two - Open communication so each member understands their task

    Number three - Get your division of labour correct so the load of operating the group effectively is spread as evenly as possible.

    Number four - Consider the end game, how you are selling the products. Some of these types of groups tend to get together to purchase, but then fracture and go their own ways to sell after they all take their share of products.

    What can happen in this case is that everyone ends up trying to sell the same products on a site like eBay, of course competing against each other in the end and making very little or nothing at all for the effort.

    In my opinion, when you create a buying group, develop an end game that will take you right through the sales process as a group as well. Make a group profit, then look at dividing profits or rolling them back into a larger purchase!

    Marc Ransom

    Community Manager
    SaleHoo.com

    About the Community Manager

  • avatar

    by: sgr4679
    SaleHoo Senior Member
    100 posts

    Re: Buying using Group Pricing/Sales

    Posted 25 Sep 11 8:28 pm.

    Thank you Marc for the response !

    You wouldn't happen to know any familiar marketplace or other online site that offers Group buying to it's customers?

    Thanks.
  • avatar

    by: fudjj
    SaleHoo Staff
    2969 posts

    Re: Buying using Group Pricing/Sales

    Posted 25 Sep 11 8:40 pm.

    Any wholesaler or genuine liquidator, all you need to decide on as a group is what type of products you are going to target, then look for one that provides those products.

    Just bare in mind, if you use a Wholesaler you may well have to have a tax id, so there will be issues there that will need to be worked out within the group as to the legal structure.

    No tax id required to purchase through liquidators.

    Cheers

    Marc Ransom

    Community Manager
    SaleHoo.com

    About the Community Manager

  • avatar

    by: sgr4679
    SaleHoo Senior Member
    100 posts

    Re: Buying using Group Pricing/Sales

    Posted 26 Sep 11 8:37 am.

    Thanks again Marc!

    Maybe you know or any1 here knows a good book to read on the subject or maybe a DVD package on some group sales book ?
  • avatar

    by: fudjj
    SaleHoo Staff
    2969 posts

    Re: Buying using Group Pricing/Sales

    Posted 26 Sep 11 8:43 am.

    No problems at all sgr, but I'm not sure about any books on the subject. I think there are so many variables with this type venture, that they would be extremely hard to cover in any definitive guide.

    I would suggest you are better off just keeping the format open to gather expressions of interest from other like minded people. Once you have a core group developed, you have the basis of your think tank, and from there you can all start chipping away at a plan that best suits everyone.

    These sorts of ventures can develop a life of their own quite quickly if you get some ideas from everyone floating around, and they can take you in directions that you hadn't even considered at the start.

    Marc Ransom

    Community Manager
    SaleHoo.com

    About the Community Manager

  • avatar

    by: sgr4679
    SaleHoo Senior Member
    100 posts

    Re: Buying using Group Pricing/Sales

    Posted 28 Sep 11 6:40 am.

    Thanks for the help Marc!