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Purchasing Groups

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  • 01-03-2012 1:31pm
    #1
    Closed Accounts Posts: 1


    Hi,
    I just want to find out are farmers out there finding much savings within their purchasing groups? I am thinking of joining one or setting one up for the purchase of inputs, chemicals and fertilizers with some local farmers.
    I just want to found out other peoples experiences, both positive and negative.
    Cheers


Comments

  • Registered Users Posts: 4,735 ✭✭✭lakill Farm


    maybe all the board memeers could set up a purchasing group.


  • Moderators, Society & Culture Moderators Posts: 12,664 Mod ✭✭✭✭blue5000


    maybe all the board memeers could set up a purchasing group.

    My flexible friend will be busy so:D four ton of fert 16-1700e odd

    If the seat's wet, sit on yer hat, a cool head is better than a wet ar5e.



  • Registered Users Posts: 5,142 ✭✭✭nilhg


    Tippveg wrote: »
    Hi,
    I just want to find out are farmers out there finding much savings within their purchasing groups? I am thinking of joining one or setting one up for the purchase of inputs, chemicals and fertilizers with some local farmers.
    I just want to found out other peoples experiences, both positive and negative.
    Cheers

    I'm in one and was involved in setting it up, for me it's certainly been well worth it but it's not for the faint hearted and you need to be very comfortable with the people that you are getting involved with and can trust them to do what they say they are going to do.

    From my experience to be attractive to sellers groups need to bring benefits for them to the table, strong discipline among the members is essential, prompt payment is essential and a culture that doesn't tolerate any messing is essential.

    Best of luck with it and feel free to PM me if you'd like some more detailed advice.


  • Registered Users Posts: 472 ✭✭pms7


    nilhg wrote: »
    I'm in one and was involved in setting it up, for me it's certainly been well worth it but it's not for the faint hearted and you need to be very comfortable with the people that you are getting involved with and can trust them to do what they say they are going to do.

    From my experience to be attractive to sellers groups need to bring benefits for them to the table, strong discipline among the members is essential, prompt payment is essential and a culture that doesn't tolerate any messing is essential.

    Best of luck with it and feel free to PM me if you'd like some more detailed advice.

    I would agree with all that. I am in one for 3 years from the start. A lot of work at the start, but very easy from year 2. Ideally you should be working from a base of a discussion group, so you have trust and numbers. Well worthwhile being in one, good savings, get to know about products you never heard of. Get advise from existing group so you don't have to reinvent the wheel.


  • Registered Users Posts: 6,343 ✭✭✭bob charles


    Credit terms are usually piss poor, and prices only so so, yes cheaper than most joe soaps. Buying groups are unloyal to any supplier so often when asked for a quote, a supplier will quote a poor price hoping they may bite as they know it wont affect future sales anyway. I think buying groups suit medium sized farmers buying commodity type products.


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  • Registered Users Posts: 472 ✭✭pms7


    True enough. If credit is important to you, don't join. Join if price important and you can pay.
    We usually get fertilizer from local coop, credit is available to whoever wants it at €10 ton.


  • Registered Users Posts: 5,142 ✭✭✭nilhg


    Credit terms are usually piss poor, and prices only so so, yes cheaper than most joe soaps. Buying groups are unloyal to any supplier so often when asked for a quote, a supplier will quote a poor price hoping they may bite as they know it wont affect future sales anyway. I think buying groups suit medium sized farmers buying commodity type products.

    Our group is big both in numbers of members and total acreage, and the threat of the loss of our business (or the share of it that they held) was enough to persuade the local merchants to quote very competitively.

    It's not just the regular farm inputs that lend themselves to group deals though, a tight committed group can do really good deals on loads of stuff if the willingness to do the donkey work is there, think of stuff like banking, insurance, parts and filters, we even had a deal for a big one off order of onboard weighers for our loaders.
    pms7 wrote: »
    True enough. If credit is important to you, don't join. Join if price important and you can pay.
    We usually get fertilizer from local coop, credit is available to whoever wants it at €10 ton.

    Credit is one of the things that can be negotiated as part of any deal, problems arise when people feel they can take the competitive price and a few extra months credit for free.

    One of the things that is often said at our meetings is the sheer convenience of having a price list to work off of, you know that you are getting a decent price for all the stuff you need, there is no need to spend minutes/hours on the phone before you go to collect, someone else has done all the hard graft for you.


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