Page 7 - BOSS Today Issue 11

GROUP

THERAPY

Buying groups have evolved within the office products industry
more effectively than anywhere else. Here’s why

here is one question commercial director at Nemo, suppliers and IT resellers among
that any budding which claims to be the oldest its members, may beg to differ.
Tentrepreneur wanting to surviving dealer group. (The What, then, is it about the
start out in the office supplies first dealer group was actually office product dealer groups that
business will come to sooner an organisation called Instat, makes them so attractive? Many
or later. They will have the usual although it merged with would say it is the discounts
thoughts about where to locate, NDA some 15 years ago to they can offer. By joining the
how to stock and so on, but form Integra, now the biggest group individual dealers can take
pretty soon after that comes the dealer group with a membership advantage of these.
question: “Should I join a dealer of 280.) Alex Dunn, sales director at
group, and if so, which one?” Beaumont’s new organisation the Superstat buying group, a
Because dealer groups, or is part of a £103m turnover group which also runs the Office
buying groups, if you prefer group called Nexus which also Biz and Praxis buying groups,
- organisations that aim to owns GDL, a buying group for explains more. “We are all about
provide special benefits for print buyers, STAG, a similar enhancing dealer profitability,” Jeanette
their members, as a result of outfit for wholesalers, and NBG, he says, “certainly through better
strength through numbers – a buying group for IT dealers. purchasing. That is why dealers Bresitz:
have become such a common Beaumont finds this last group will still come back for more, and “You have to
phenomenon within the office the most interesting. “I previously it is what we started with in 1994.
industry in recent years that worked for a £3bn turnover IT We have economies of scale on meet criteria
it takes a newcomer to point company,” he says, “and never our side.”
out just how unusual that is. even knew NBG existed.” It is through such purchasing to join as a
Many other retail sectors, such Buying groups, it would power that many of the buying
as independent fashion, for appear then, are not such a groups make their money. While dealer, but
example, get by without any sought after commodity in the membership fees undoubtedly
such assistance. world of IT dealers, although help to cover some of the costs, we are open
That newcomer is Tim Advantia, another buying group most make their money through
Beaumont, recently appointed that counts both office product the rebates they get back from to start-ups.”

March 2012 | BOSS TODAY 7

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