Turn Up The Volume: Why Buying Groups Make Good Financial Sense

By Tim Hosinkson, Vice President at Unistar Purchasing Solutions

For most companies, cutting costs without sacrificing quality is an ongoing adventure. It’s just part of the business world’s prime directive of profit maximization. In C-level suites across the country and even the world, highly intelligent people debate the pros and cons of various cost-saving measures. Sometimes the debates prove fruitful and other times they can prove contentious. Often, however, they lead to a painful conclusion for someone down the line, whether it’s a vendor or an employee.

However, when executives and accountants look at their spreadsheets, it’s no surprise that the larger expenses are what stand out the most. By their sheer size, large expense items become the immediate target of such discussions. Those items will be studied and analyzed for months and sometimes years by people who are looking for ways to reduce their costs. By the time someone stumbles upon a way to find a way to cut an expense, the number of man-hours it took studying and analyzing often offsets the savings.

The Little Things add Up

Conversely, smaller expenses – the ones that add up over time – are too often overlooked or even worse are outright ignored. We take for granted that office supplies should cost X, printing should cost Y, and garbage service should cost Z. As an aggregate, these “smaller” expenses can end up costing a medium-sized company tens or even hundreds of thousands of dollars each year.

Generally, however, these smaller expenses tend to fly under the radar as individual expense items or are lumped into someone’s “operational budget”.  After all, how much can you really save on copy paper, business cards or dumpsters?

The Cost–Benefit Issue

Prudent managers weigh the cost-benefit ratio before taking on any new project.

Question:  “Where do I dedicate the time and energy of some of my best people?”

Answer:    “Where they can make the biggest impact on my bottom-line.”

Putting your best people on the high-dollar, high-visibility expense areas is a real “no-brainer”.  But what about the other smaller expense areas?  Do we continue to push them aside and hope to get to them…eventually?  This is exactly where purchasing service firms, or buying groups, come into play.  They have the experience, expertise, and ability to deliver cost savings in these areas with very little of your time and energy.

The Purchasing Solution

For many years now, companies have been turning to third party service providers to add value, expertise and experience in areas where it makes sense. These days, purchasing service firms are doing that very same thing. Purchasing solution companies like Unistar can help your company cut costs by helping you better manage your purchasing in common operational expense areas like; office supplies, solid waste services, commercial printing, janitorial products, and so on. PLUS – they can show you how to lower your spend in these areas by 10, 15, 20 percent or more.

With an average savings of 20%, minimal effort on our clients behalf, and no supply or service disruption, why wouldn’t you want to talk to Unistar? Whether your goal is cost savings, creating efficiencies, asset reallocation or other – working with Unistar really is a “no-brainer”.

Want to find out what we can do for you?  Contact us at 502-238-8260 for a no hassle, no pressure conversation

Get An Estimate Today!

verage savings of 20%, minimal effort on our clients behalf, and no supply or service disruption, why wouldn’t you want to talk to Unistar? Whether your goal is cost savings, creating efficiencies, asset reallocation or other – working with Unistar really is a “no-brainer”.

Want to find out what we can do for you?  Contact us at 502-238-8260 for a no hassle, no pressure conversation

Get An Estimate Today!

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