GPO Myths: Debunked

We hear a lot of wonderful feedback from our members about how a GPO membership transformed their businesses and gave back valuable time in their schedule. From increased flexibility to impressive profit margins, the benefits are undeniable.

But when talking to caterers, restaurant owners, and other food service providers, it is clear that there are some misunderstandings that hold industry professionals back from attaining the big results their competitors achieve.

In an effort to clear the air, let’s debunk a few GPO myths and set the record straight.

“I do not want to feel locked in by a GPO.”

If a GPO agreement includes obligations for what, when, and how much you purchase, stay clear and look for another one. Credible GPOs will never lock you into an agreement, ensuring business owners retain complete control over their companies’ purchasing decisions. With that said, members can participate in as many—or as few—supplier agreements as they want while continuing to work with existing partners.

“I am already getting great deals, so I do not need a GPO.”

While you may receive advantageous deals on your own, GPOs employ well-established networks to leverage greater discounts than any individual possibly could. When you consider the time saved from sourcing and negotiation, it’s a hard deal to beat. But don’t worry, GPO members are free to pick agreements and are never locked in — so you can retain existing discounts while taking advantage of others from the GPO.

“Switching suppliers is not worth my time.”

Saving money on regular food purchases is certainly worthwhile, but we have found many members are most pleased with the unexpected time returning to their schedules. A GPO’s streamlined procedures and member resources allow it to handle much of the heavy lifting, allowing companies to focus on their customers instead of their suppliers. So while the upfront transition may call for some creative solutions, most business owners agree that the time it takes to join a GPO is a long-term investment in efficiency.

“GPOs are just scams that want me to purchase more.”

This myth is so far from the truth, it’s almost laughable. GPOs do not exist to fill food distributors’ bank accounts with your hard-earned cash. Quite the opposite! While we partner with suppliers across the country, our job is to facilitate negotiations that prioritize your business’s needs and reduce overages. We know you do not always need to purchase in bulk, so the GPO model is designed to secure wholesale pricing for the end user without resulting in excess. Our philosophy: Less is, indeed, more!

While not often discussed, GPOs exist in many industries, from food service and manufacturing to healthcare and nonprofits. In fact, it’s likely that leading brands in your market leverage the purchasing power of a GPO to save time and money.

The model works for countless businesses with regular purchasing needs, and since it is free to join, there is no harm in trying it out to see if it is a fit for your company. Ready to start? Request a quote or get in touch with our team to begin enrollment.

Clint Elkins is the V.P. of Sales for SB Value, a Group Purchasing Organization that helps culinary professionals save an average of 16% on every food order. Membership is 100% free. No hidden fees. No extra work. Just extra profits. See how much you can save on your next food order when you become an SB Value member. Request a quote today.

Top Ways a GPO Will Make 2023 Your Best Year Yet

As we ease into the new year, you’re likely wondering, “How can we make 2023 even better than 2022?”

You’ve learned countless lessons each year in business, but if you’re truly looking to maximize growth in the coming year, it’s time to start thinking differently. One of the best ways to grow? By saving money and putting more time into your schedule — which is exactly what joining a group purchasing organization (GPO) will allow you to do. 

GPOs leverage collective purchasing power, so group members receive better pricing through bulk savings (without compromising on quality). This means you’ll save big on food orders and eliminate the stress of price shopping. Companies that join a GPO can take advantage of bulk rates and discounts to position themselves for success in the new year.

If you’re new to GPOs and hoping to skyrocket your growth in 2023, here are four ways a GPO can help you achieve that.

Cut costs

Though there are a handful of ways to save money in the food industry, it’s hard to find strategies that don’t compromise the quality of your menus. Fortunately, a GPO allows you to get the high-quality items you need without breaking your budget. In addition, with an efficient shipping and delivery process that’s more sustainable for the supplier, you’ll get a lower cost per item without purchasing more than you need.

Put more time into your schedule

How many hours have you spent scouring the marketplace for unique brands and the latest deals? What if you could spend that time on revenue-generating activities instead? With a GPO, you can let someone else handle the heavy lifting. Experienced GPO managers have extensive knowledge in the catering and culinary industry, are familiar with negotiation best practices, and have a network of ingredient suppliers at their fingertips. As a result, you’ll get everything you need while having more time to focus on doing what you love. 

Access more options

If you’ve purchased from the same handful of distributors, you’ve likely had to deal with limited options. Most food providers partner with specific brands, so you can only access their available inventory. The result? Limited menus and fewer opportunities to turn a profit. Fortunately, GPOs have access to some of the top food suppliers, so you can get better options at better prices when sourcing ingredients. 

Rely on professional support

The best GPOs provide members with worthwhile resources, education, and support that allows them to grow their businesses. You’ll become part of a group that understands the ins and outs of your industry, so you can get the advice you need to move the needle in your business. Whether it’s menu development or maintenance solutions, your GPO can help guide you as you grow.

If you’re looking to scale your business in 2023, now’s the time to consider joining a GPO. Memberships have no fees, so you can rest easy knowing you won’t be locked into any purchasing requirements. Grow your business, cut costs, and start 2023 on a high note!

Clint Elkins is the V.P. of Sales for SB Value, a Group Purchasing Organization that helps culinary professionals save an average of 16% on every food order. Membership is 100% free. No hidden fees. No extra work. Just extra profits. See how much you can save on your next food order when you become an SB Value member. Request a quote today.