The event industry was hit hard by the COVID-19 pandemic, causing businesses across the board to look for ways to reduce costs. With an unstable economy, it’s vital to find additional strategies to bring in revenue and raise profit margins. However, even as events have made a comeback, caterers should still be mindful about spending.

One of the most effective ways to do so is by joining a group purchasing organization (GPO) for caterers. A GPO is similar to a mutual fund, but rather than stocks and bonds, caterers join together to buy food supplies. Forming a large group allows businesses to increase their buying power and get better prices due to the high volume of products they purchase.

Bulk orders tend to come at a lower cost than small orders, but you might not need to buy all of your ingredients in bulk if you're a smaller catering company. With a GPO, you can place orders at a discounted rate while only paying for what you need. Though you’re not getting any money back as you would with a rebate program, you will be saving money upfront with each order.

Joining a GPO is a great cost-saving strategy, and there are a variety of benefits when it comes to finding the right GPO for your business. Here’s what you need to know.