There are many misconceptions about group purchasing organizations. The truth is group purchasing is a great option for construction companies – especially those looking to increase revenue and continue growing.
One of the most common misinterpretations about group purchasing organizations like CBUSA is that they’ll try to replace your current purchasing department. However, GPOs have no intention of replacing anyone. On the contrary, they actually serve as an added resource for your team.
What is a GPO?
A GPO or group purchasing organization uses the buying power of several businesses – in this case home builders – to negotiate the best pricing and access representation from material suppliers and brand manufacturers. GPOs simplify the purchasing process for their members and allow them to compete with large national companies.
GPOs have the power to negotiate better discounts while improving terms and conditions with vendors. This is highly beneficial for builders because it saves them valuable time, money and resources.
The benefits and support provided by GPOs offer builders opportunities they wouldn’t have on their own. Here’s how having CBUSA as an extension of your team will help your construction business be more successful.
Savings on building material costs
Unlike your purchasing team, CBUSA doesn’t have any control over transactions you’re making. It’s simply here to help save money on materials you’re already buying. CBUSA is a partner in your success and will leverage manufacturer relationships to help your purchasing professionals accomplish more.
“When CBUSA, who has national relationships with 84 Lumber, gets involved, they [84 Lumber] listen differently,” said Justin Einstein, director of operations at Aubuchon Homes in Cape Coral, Florida. “We get better prices and better commitments on deliveries, and we wouldn’t be able to do that without CBUSA.”
CBUSA’s committed buy programs and established relationships give builders the upper hand with better material pricing and availability for products that are hard to get.
Access to top industry professionals
The home building industry often lacks opportunity for builders to collaborate and share ideas. And smaller home builders wouldn’t have access to the support and higher level of industry relationship opportunities without a network like CBUSA.
“It’s because I’m a part of this group that I have the opportunity to sit down with people like David Kohler, head of Kohler, and have a discussion,” said Jon Showalter, chief operating officer at Homes by Dickerson in Raleigh, North Carolina. “The doors are open to so much more networking than any one business.”
As a CBUSA member, you’re given a collaborative space to work with the industry’s best to implement change and ensure growth.
Better relationships with local suppliers
CBUSA helps to establish and maintain relationships with local suppliers. When you work as a team, there’s an added level of trust that builds, which ensures not only the best material pricing but also higher prioritization from vendors.
“The biggest recommendation for working with CBUSA I can give other suppliers is the clientele,” said Chris Hayes, sales representative at Fox Building Company in Oklahoma City, Oklahoma. “I can guarantee I’m working with reputable companies and I’m going to get paid on time. We’re going to prioritize CBUSA, and CBUSA has always stood up for me as a vendor.”
Having these types of relationships with your local suppliers is invaluable and gives you an edge over other builders not working with CBUSA.
Trusted suppliers and products
The long list of daily tasks and jobs leaves you with less time to actually get work done. Having CBUSA as an extension of your team will allow you to let go of certain responsibilities like finding trusted suppliers and avoiding added costs. Instead, you can focus on important business tasks like visiting job sites and managing client relationships.
“I like that I have CBUSA as my big brother watching my back because building houses is a mentally demanding job,” said Ryan Johnson, owner of Revolution Homes in Raleigh, North Carolina. “With CBUSA, we feel confident we’re getting the right price for what we’re doing.”
CBUSA works with your team to ensure you’re getting the high-end products your clients want at the best price.
Are you ready to add the power of group purchasing to your team?
As a member of CBUSA, your team will have support from our representatives and purchasing experts. You’ll also have access to our network of preferred local vendors who prioritize CBUSA builders. Become a member and see how our team can help ensure your business’s success.
