Starting a wholesale buying club business has become a growing trend.
This is most popular with groups identifying the advantages of bulk purchases. This is a club that works on the principle of economy of scale.
The higher the volume of purchases, the lower prices become.
If interested, we’ll show you how to start a wholesale buying club.
After reading through, you should have a pretty good idea of what to expect when opening a wholesale business.
What’s a Buying Club?
This can also be termed a cooperative.
Also, there are no set requirements for the number of people needed to form this group.
Therefore, a buying club can be made up of a small group of colleagues from the workplace. The most common types of wholesale buying clubs are made up of families.
However, buying clubs isn’t limited to these groups only. Any group of persons with a common goal can establish one.
Driven by a Common Need or Philosophy
Before a wholesale buying club is formed, there must be a common need or philosophy. Whatever these are, tons of benefits are always derived.
Therefore, bulk purchases of food, equipment, services, and more are often the case.
How to Start a Wholesale Buying Club
It was proper to discuss the above points before focusing on the “how” of starting a wholesale buying club. This is necessary to allow for a better understanding of the concept.
This section will discuss the different steps or procedures involved. Each is vital to the realization of this objective.
This is an integral and vital part of starting a wholesale buying club. Who qualifies as a member of the club? And how are responsibilities performed?
So, you’d need to deal with the question of eligibility. You also need to consider if fees or dues are to be paid by members.
What more? The question of restriction also arises. In other words, decisions must be made on the maximum number of members allowed.
Sanctions, as well as an authority structure, need to be in place, among other things. The membership structure offers a guideline with which to operate. Therefore, these and others must be fully addressed when starting a wholesale buying club.
The Decision-Making Process
Decision-making is an integral part of both formal and informal groups. The same applies to a wholesale buying club. This aspect ensures there’s smooth running of all business activities.
So, to start a wholesale buying club, this structure must be fully in place.
But how exactly should this be configured? By providing answers to important questions. Some areas to be considered include choosing those who will partake in the process. Certain qualities should be present in those selected.
Additional areas will include coordination. By coordination, we mean the process of choosing who heads the buying club.
There are times when certain agreements or decisions require adjustments. So, it would help to decide who or when such contracts need to be reviewed.
Also, how are decisions reached? Who’s involved in the process, and how are errors (relating to decisions made) corrected? These and more allow for the smooth running of your wholesale buying club.
Successfully starting and running a wholesale buying club is no small undertaking. This requires all its members to play an essential part in daily running. Consider this as a full-fledged business.
In other words, members will be required to play crucial roles. Such roles depend on what’s needed. However, it’s no secret that specific jobs are more demanding than others.
As a result, the assignment of roles or jobs will have to be scheduled. Running part-time shifts and rotations allows for an even distribution of responsibilities. In addition, members who put in the additional time will have to be compensated.
Before starting a wholesale buying club, you should have mapped out specific roles. Some of these may require more than one member to perform them. But what are the typical functions or job types? Well, this depends on your kind of wholesale buying club.
However, there are broad classes of job descriptions or roles you are likely to put in place. These include but aren’t limited to;
Coordinator(s), membership coordinators, job supervisors, order collators, treasurers, bookkeepers, distributors, and a publicity department. Wholesale buying club needs may differ.
Hence the need to put in place appropriate job descriptions. By doing this, you can structure your business to work efficiently.
This is a vital part of the club that requires members to abide by specific rules.
Without rules, there’s hardly an understanding among members. This is an effective way to reach your goals as a buying club.
But, before a by-law is drafted, it will require the input and approval of all its members. It also has definite responsibilities. Through this provision, guesswork is eliminated.
There are times when difficult situations may arise. It’s during such times that bylaws are most effective. This is why it’s essential what’s included in the by-law.
Members can come up with great ideas and tips on what it should cover. You’d also need the input of an expert.
The Ordering Procedure
There’s little or nothing that can be achieved without this. This is the process that captures the essence of a wholesale buying club.
It should include vital areas like order, delivery, distribution, pick-up, and invoicing. These are the bedrock of wholesale club operations. It charts the process through which members make purchases, among other things.
Starting a wholesale buying club is a viable economic strategy that benefits any group. However, this needs to be carefully planned.
Without the required planning, little or nothing will come out of it. The structures, as mentioned earlier, are necessary to achieving success.