November 7, 2024
Let’s just get this out of the way: Cooperative purchasing sounds a lot like something muppets might have taught you about on Sesame Street. In fact, it sounds so great that every now and then, it can sound a little too good to be true. So it’s understandable that some myths have popped up around the topic.
Normally, we’d applaud this type of skepticism at Marco. However, cooperative purchasing programs are often a huge problem-solver for nonprofits and government agencies of all shapes and sizes. The only bad thing about it? Not enough eligible organizations (nonprofits and government agencies) take advantage of it. So in this blog, I’ll debunk a few common myths that get in the way.
The Top 5 Myths About Collaborative Buying
I’ve heard it all, but these are the myths that tend to come up most often.
1. Cooperative Contracting Limits Your Vendor Options
If you haven’t worked with cooperative purchasing organizations before, I can understand why this would be an easy assumption to make. After all, if every single contract is pre-negotiated, how many can they possibly have? Well, you’d probably be surprised. Fortunately, it’s very easy to go on each organization’s website and find well-organized lists of options in just about every technology category there is. Of course, if you don’t like any of the contracts, you aren’t forced into accepting any of them. But hear me out: Does it do any harm to at least look there first?
There are over 250 purchasing co-ops in the US, many of which are region-specific, cater to specific types of organizations, or help fulfill more specialized needs. Here are the group purchasing organizations we’ve already partnered with:
- E&I Cooperative Services
- Sourcewell
- Cooperative Purchasing Connection (CPC)
- Association Of Educational Purchasing Agencies (AEPA)
If you’re in education or you work for a local government, the above list would be a great starting point to start clicking around and seeing what’s available. While you’re at it, you might also want to ask a business manager or your purchasing department if your organization already has a membership with a purchasing co-op. It’s often free.
2. Group Purchasing Organizations (GPOs) Only Work for Large Organizations
This one’s always tough to hear. Not only do GPOs help organizations of all sizes, but smaller organizations often have the most to gain!
Smaller organizations tend to have difficulty negotiating more favorable terms from vendors because, quite frankly, their contract just isn’t going to necessarily be as profitable as that of a much larger one. Larger organizations still have something to gain from cooperative purchasing, but by and large, more vendors are actively fighting to win their business, and so they have more inherent bargaining power.
3. Procurement Efficiency Comes at the Expense of Flexibility
Again, this myth totally makes sense if you’ve never worked with a GPO before. So I get it! But the truth is that most of the agreements allow for a degree of customization, including product substitutions, volume adjustments, and adjustments to service terms.
4. Bulk Purchasing Power Compromises Quality
Basically this myth assumes that getting a lower price means you also get lower-quality products and services. And I’m happy to report that that is absolutely not the case.
GPOs have an extremely high standard for their contracts, and when we choose to partner with one, we have to demonstrate that members will also get a product or service that will serve their members well over time. In fact, GPOs are very much like technology providers in that way — the relationship isn’t transactional. Instead, it’s based on building trust and providing value over time.
5. You Actually Don’t Get Streamlined Procurement
A lot of people get bogged down by the thought of joining a cooperative purchasing organization. But if you’re expecting a lot of red tape and websites that look like they were assembled entirely by bureaucrats, prepare to be pleasantly surprised.
The entire reason these organizations exist is to make procurement easier for their members. So expect user-friendly portals and easy, transparent processes.
Using a GPO is actually a win/win to help you access a better contract much faster. And if the contract you’re getting is also designed to help you save time and money, you’re going to love it even more.
Using Procurement Innovation To Reduce Print Costs
We have secured many pre-negotiated contracts in a few different service areas, like phones, AV or security systems, IT, and printing. We’re proud of what we provide GPO members in each of these areas, but if you’re hoping to achieve many difficult goals with just one simple service, managed print services is the “technology unicorn.”
Many organizations outside of higher ed are hoping to increase their security while reducing common frustrations, cutting costs, and saving time for their IT staff. But we’ve found that in 2024, colleges and universities are in dire need of this service, but also are facing tighter budgets and ongoing recruitment challenges. Managed print services can help with both — and thanks to our E&I contract, ours can now be purchased much cheaper.
Click the link below to read more about what we bring to the table!
