We’re often asked by promotional product distributors “Should I join a buying group?” – and truth be told, we’ve not really been well informed enough to comment. So we asked five of the leading buying groups to tell us what makes them a good choice for distributors; what makes them different, and what sort of distributor is a good fit for their services. We also asked five members of these buying groups to give us their honest feedback on value for money, support, and whether they felt they could have made it as far without their network. These are the slides that accompanied the presentation, which took place on April 8, 2015.

1. Webinar: Buying Groups
Explained
Presented by: Philip Shehadeh

2. Topics We’ll Explore!
• What is a buying group?
• What are the different types of
buying group?
• What’s in it for you?
• Who is not a good fit?
• What are the possible disadvantages?
• What are your options?

3. What is a “Buying Group”
An organization that leverages the
purchasing power of a group of
distributors to obtain discounts from
vendors based on the collective buying
power of the group…

4. How Do Buying Groups Help?
Depending on the
group, some offer the
following services to
their members:
• Order Financing /
Accounting & Back
Office Support
• Sales and Marketing
• Brand Identity /
Equity

5. How Do Buying Groups Help?
• Web Technology
• Graphic Design
• Training &
Professional
Development
• Payment Advance
Programs

6. What’s in it for You?
• Sourcing, financial and
graphic design
support means you
can focus on selling
• Better pricing from
suppliers can make
you more competitive
• Network of supportive
distributors is
particularly useful for
newcomers to the
industry

7. What’s in it for You?
• Without cash flow
concerns, you can
pitch for large
volume jobs
• The brand name
may open doors for
you with suppliers
and potential
clients

8. Who is Not a Good Fit?
• If you’ve already negotiated better
pricing with your key suppliers
• If you have no challenges with cash
flow
• If you can efficiently source products
• If you have reliable, affordable
graphic design resource
• If you prefer to keep all of your
revenues!

9. What are Your Options?
We’re taking a look at five very
different buying groups, or
‘distributor support networks’

10. • Not a Franchise
• Brand Independency
• Non restrictive agreement
• Print Division
• Sales and Marketing Consultant, Cliff Quicksell
What it Costs:
Affiliates own their own company and pay a flat transaction fee
depending on sales volume to IPU

11. “Since our affiliation with iPROMOTEu, our business has
more than doubled because I have the ability to
concentrate on selling and not contacting vendors for
status or checking to see if cash flow allows us to
consider the job.
We have been able to bid on large volume jobs with
confidence know we have both the buying power of
iPROMOTEu and the ability to fund the orders.”
Jamie Bradford Lopez from Po’Folks Promos

12. • $500 million in purchasing clout and cash flow support
• An appointment setting team
• Company stores
• Free credit insurance
• A $4 million sales and marketing fund
• A sales recruiting department to help build your team
• A North American Major Account team to help you win large
accounts
• A leadership team whose founder built a giant
distributorship of his own
• 135 Million Dollar and Multi-Million Dollar Club members

13. “Proforma has allowed me to land larger prospects, mainly by
giving me the power of a 400+ million dollar organization. The
resources they provide are essential for my success.”
-Dick Gray
“Better pricing makes it easier to quote, especially in situation
where we need to bid for a project. We also get much better
customer service from the suppliers.
“We are currently bidding on a large overseas project –
Proforma’s name and overseas sources makes it so
much easier.”
-Anonymous Proforma Member

14. Pay Plan:
There is a one-time flat fee to join
Proforma as well as to receive their start-
up “marketing kit.”
Members pay monthly royalties on a
declining scale of sales.
There is a small fee for the marketing fund
Technology fee of $100/per month.

15. • Reduced administration time
• Financial support and credit lines
• Better pricing so you can compete with bigger
distributors and still maintain an acceptable
gross profit
• A means of maintaining the business and
making extra money while seeking a buyouy
• Reduced overheads as no need to have a
graphic designer / admin staff
• Best in class marketing and technology services
• Keep your current company name

16. “ After working with another distributor, I’m really
happy to be with Vernon now. I am recognized and
rewarded for what I bring to the table as I focus on
growing my business, and I’m making a lot more
money today.”
-Luke Sigle

17. Pay Plan:
No Franchise fee or owners fee
Commission-based (sales volume
based)
Most services provided at no charge to
a minimal fee.

18. • Stability
• Up to 65% profits paid
• Cash Flow - Profits paid up front at time of order entry
• Profits paid daily via ACH bank wire transfer
• Protection against product liability and customer bad
debts
• Buying leverage with suppliers
• Annual cash bonus and awards
• Preserve and keep your identity and your customers
• No binding contracts or agreements - no monthly fees
or costs
• Lucrative referral program

19. “My affiliation with Kaeser & Blair means I can focus on
the value I add as a consultant, not on product
sourcing, artwork re-touches or proof approvals.
“Everything I can outsource cost-effectively, without
compromising on quality, I do; I’m free to be a creative
problem solver, not a product-pusher.
“I pay K&B a commission for every order I source
through their services; there are no other fees.”
-AJ Ogaard

20. Pay Plan:
Sliding commission plan that pays as
much as 65%

21. • Preferred pricing and benefits from over 90 top
suppliers
• Substantial discounts on popular industry tools
and services
• Quick service and discounts on vector and
digitizing needs
• Support from experienced industry professionals
• Industry Training
• Monthly interactive teleconferences
• Access to sales strategies and prospecting
tactics

22. “I’m so happy to be part of AIM… Finally I don’t feel like I am on
a deserted island.”
-Desiree
“AIM is great! Partnering with the best suppliers in the industry
to provide them with bigger sales figures and preferred pricing
for the distributors makes perfect sense.”
-Rich H.
"AIM membership has helped me with ideas from other
distributors, and with automatic lower prices from vendors.
Membership pays for itself several times a year, minimum. I
love having a group of peers we can go to with problems,
asking for advice and creative solutions." - Tim M

23. Pay Plan:
-$59/month.
-You are not locked into any term
contract with AIM.

24. Who To Contact?
iPromoteu
Bob Schwei
bschwei@ipromoteu.com
AIM
Jamie Coggeshall
jamie@aimastermind.org
Vernon
Dave Regan
daver@vernoncompany.com
Proforma
Arikka Hall
info@proforma.com
Kaeser & Blair
Kurt Kaeser
kkaeser@kaeser-blair.com

25. Thank You
• Ultimately, all organizations mentioned
in this webinar benefit from your
success by retaining your business.
Because of this, you can expect them to
have a strong interest in improving your
business.
• Each group has a relationship with
Customer Focus. Please contact us to
hear more!

26. Contact Me Anytime!
Philip@customerfocus.com
866.564.6247 ext.7014