How to get builders to join your local CBUSA chapter
Use these actionable steps to help you increase your CBUSA chapter’s membership with enthusiastic builders eager to contribute and learn.
August 23, 2023
What is a GPO?
A construction group purchasing organization uses the buying power of several home builders to negotiate the best material pricing. GPOs establish relationships with material suppliers and brand manufacturers to simplify the purchasing process for members and allow them to compete with large national companies.
Why should you join a GPO?
All too often home builders describe their profit margins as slim. And it’s shockingly common for builders to go from project to project relying on the profits from one job to pay for the next.
Does this sound familiar?
With challenges like a fluctuating economy, labor shortages and unpredictable material supply chains, you can’t afford to play it that close with your financials. It’s just not sustainable long-term.
So, what’s the secret to success?
The truth is – there’s no secret. But there is a solution. It’s a solution that led one builder from Richmond, Virginia to become the top home builder in his area with a business that continues to grow. Joining a GPO is how Mitchell Bode, president of Boone Homes, was able achieved an annual revenue of $56 million. This success could be yours, too, with the benefits of group purchasing.
What are the benefits of group purchasing?
Cost savings
Group purchasing allows builder members to lock in lower material costs through group buys with other local contractors and earn rebates through brand partnerships.
Builder relationships
A supportive community leads to success. Forming relationships with a network of like-minded professionals through group meetings is key to business growth.
Brand partnerships
GPOs allow small builders to maintain independence while also providing access to brand reps from some of the industry’s biggest brand names – a perk typically reserved for national builders.
Help with negotiating
Time is money — and negotiating takes time. GPOs negotiates on your behalf, so pricing information is readily available.
“All the commodity prices have been up and down, and CBUSA has helped us provide more of a stable pricing structure. We’re really grateful for the partnership with CBUSA. They’ve really made it easy for us, and that’s really important to our relationship. I really do appreciate that.”
“I think my favorite part of CBUSA is the relationships. Getting better volume pricing and national rebates is definitely a perk, but the relationships with our industry are critical to our success.”
“We’ve got builders in our group that build 100 houses a year, so they can get better pricing than I can regardless. For them to come in and say, ‘I’m willing to leverage my spend to help you get your pricing down,’ is pretty significant.”
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How do GPOs work?
GPOs have the ability to secure discounts and lower vendor pricing. These benefits provide builders with substantial savings in material costs, time spent negotiating and company resources. Partnering with CBUSA as an extension of your team unlocks unique opportunities and invaluable support, enhancing potential for business success.
Join forces
Work with the GPO to gather a group of top-performing builders in your local market or join a chapter that’s already up, running and finding success.
Identify key players
Work with the GPO to find suitable local suppliers and establish national contracts through local vendors.
Attend chapter meetings
During membership meetings, you’ll network with fellow builders and develop cost saving programs specific to your market.
Put it into action
Work with other builders in your group to buy materials in advance and get lower prices while avoiding week-to-week market hostility.
Earn rebates
Report on both local and national contract purchases using the process put in place by the GPO, and earn thousands in rebates.
What is the best GPO in construction?
CBUSA is the leading group purchasing organization for the residential construction market. Our network connects like-minded, professional home builders with the intention of promoting collaboration and ensuring cost savings for its members.
Since 2004, CBUSA has brought more than 500 independent builders and over 1,200 suppliers together to create more than 30 plus local chapters across the country. We’re currently working to expand even further by establishing member groups in new markets.
How much can you save by joining CBUSA’s group purchasing organization?
$10 million
Distributed in rebate dollars in the past year to all members
$9,500
saved on average per house for members
Top 10 builder
purchasing power with CBUSA
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