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Which Buying Group Should You Join?

Buying groups pool the purchasing power of independent distributors to win better pricing, rebates, and supplier access. The right group can add points of gross margin; the wrong one is a membership fee and a trade show.

How to Decide

Supplier overlap

The rebates only matter if the group's preferred suppliers are ones you actually buy from — or should be. Map your top 20 vendors against the group's roster before you look at anything else.

Rebate structure

Understand how rebates are earned, when they pay, and what share the group keeps. Growth-based rebates favor expanding distributors; volume tiers favor larger ones.

Peer network

The quiet value of a group is the owners in the room: benchmarking, hiring leads, and eventually, buyers for your company.

Exit implications

Some groups have transfer restrictions or repurchase provisions that matter in a sale. Read the membership agreement with your exit in mind.

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