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Distributors Taking Shelter Under Buying Groups' Umbrella
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The economic downturn is motivating many independent jan/san distributors to go out and try new business practices to stay in business. One popular path distributors are taking is joining an industry buying group.
Buying groups, also known as marketing groups, are organizations that unite independent distributors into a more competitive business force. These groups offer better pricing and more pull with manufacturers in addition to value-added services and national account opportunities that help level the playing field for distributors.
Fearing that the current economic woes will force another unprecedented wave of industry consolidation, today's distributors believe that taking shelter under the umbrella of a buying group can help protect their margins and provide the resources to expand their business reach.
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