You can view our infographic on Bulk Buying Strategies here.
As consumers, we’re familiar with saving money by purchasing products like food and household goods in bulk. But, can this same savings model be applied to the purchases and operational costs of a homeowner association (HOA), condominium or community association?
Whether it’s buying in bulk or negotiating better rates with service providers, there are a number of tactics you can use to increase your buying power and save money for your association. Your residential property management company can also help facilitate savings by coordinating bulk-buying power as well! See below for a few simple tips on how to start saving today.
1. Shop smart.
For simple, everyday purchases, if you’re not already using online retailers to get the most for your money, it’s time to start! Comparing prices and shopping online is an effective way to make sure you’re saving on the things you need to keep your operation running smoothly.
Take a close look at all of your vendors, contractors and service providers and identify opportunities to negotiate discounts. Do you make a large amount of purchases from a particular store each month? You may be able to get a volume discount. Do you pay your bill in full the same week you receive it? Talk to your service provider about a “quick-pay discount.” Perhaps invoices paid within the first 7-10 days can be reduced by 2 or 5 percent.
3. Don’t work alone.
Form alliances with other local communities and vendors.. By working together, you’ll have more pull with these vendors and service providers when negotiating discounts. You can also take this strategy online: Group-buying sites like BuyerHive.com allow businesses to pool together and increase their buying power which results in retailers dropping their prices.
Taking the above steps in your purchasing process can go a long way in bringing significant savings to your association. To learn more about these and other strategies for running a cost-efficient HOA or community association, complete the form to receive future educational resources delivered directly to your inbox.