Saving Our Members Money One Order at a Time
Not Just A Buying Group;
A Unique Purchasing & Cost Control Solution
When considering whether to work with purchasing professionals, like HSG, join a group purchasing organization or go it on your own, look to the bottom line. That's what counts.
A Total Focus on You!
What differentiates Hospitality Services Group (HSG) from other groups is that we are purchasing professionals 100% focused on you, our client.
You may have been approached by a “Group Purchasing Organization" (GPO) soliciting your business. These groups claim to purchase hundreds of millions of dollars of products for their clients and purport to save them money by aggregating purchasing power. Most of the GPO’s encouraged or require members to use a set of approved vendors, usually only a single vendor per product category. Most GPO’s receive payments from their approved vendors based on a percentage of what you spend. The more their members spend, the more money they make. See the problem here? Who indeed do the GPOs work for – the vendors who actually pay them or their members who do not?
Hospitality Services Group is not a traditional Group Purchasing Organization. . . and the distinction is crucial.
HSG does not accept money or any other consideration from any vendor. HSG’s loyalty is 100% with you, our client. This is the cornerstone of our service and one of the things that makes us unique and especially proud of what we do.
We look to improve your bottom line. That’s what counts.
Differences Between Hospitality Services Group and Group Purchasing Organizations (Buying Groups.)
Buying Groups Are Paid By Your Vendors.
Buying groups don’t work for free. Your vendors pay them a fee. The amount paid to the buying group by each “approved” vendor is based on the dollar amount of your purchases. The more you spend, the more the buying group is paid.
HSG offers you undivided loyalty. Our one and only goal is to negotiate the best prices for you. We don't make deals with our vendors at your expense.
Buying Groups Offer Only One “Approved” Vendor Per Category.
Buying groups believe “one vendor fits all” and negotiate pricing with a single “approved” vendor for each product category in order to maximize the fee the Buying group receives from that vendor.
HSG believes that your purchasing needs are unique. So, we solicit bids from multiple vendors in each product category. HSG always offers your incumbent vendors the chance to bid. We don't automatically substitute a new vendor without giving the existing vendor a chance to keep the business. HSG requires vendors to provide you with the products you need, delivered at the time and place you need them and at the lowest possible cost to you.
Buying Groups Rely on “Cost Plus” Pricing.
Buying groups negotiate contracts with their suppliers based on the vendor’s “invoice cost”. Freight charges and a negotiated markup (which includes the percentage to be paid by the vendor to the buying group) are added to the vendor’s “invoice cost” to determine the prices that you will pay. Car dealers frequently use this same pricing strategy offering to sell cars at “invoice cost.” Manufacturer incentive programs, rebates and allowances (which are available on almost every item) go directly to the vendor or GPO’s pockets without reducing the “invoice cost” that you pay.
HSG compares the “net delivered price” for every individual item on every order. These are the prices you will actually pay.
Buying Groups Prefer Rebates Over Deviated Prices.
Buying groups often negotiate directly with manufacturers and packers for rebates on high usage items. The rebates are paid directly to the GPO, which keeps a portion for themselves before sending you a check for the balance.
HSG also negotiates directly with manufacturers and packers on high usage items. Instead of rebates, HSG uses “deviated prices” – which come 100% directly off the price you pay. No tracking or paperwork necessary; further reducing costs.
Buying Groups Don't Always Monitor Pricing Compliance.
Buying groups conduct random price checks to insure bid compliance. They don't monitor every order. HSG monitors every order, item by item.
Buying Groups Offer A Single Service.
In addition to great pricing – almost always better than that offered by a buying group -- HSG provides expert personalized advice to help you choose products that are best for your individual operation. HSG’s system provides you with detailed use and price history, simple inventory calculation and up-to-the-minute recipe costs using prices that are automatically updated every time you purchase a product.
If you are dissatisfied with our service at any time, or do not feel it is saving you money, simply terminate your agreement with no exit fee or further obligation. We know we have to earn your business every day, and are confident that we can and will do exactly that.