Debunking Top GPO Myths for Caterers

By Clint Elkins, SB Value

For catering professionals, maintaining profit margins can feel like a delicate dance between pricing services and purchasing inventory. While there are numerous techniques to increase profitability, many of them come with uncertainties. For example, raising prices or changing menus can pad your bottom line, but these practices can lead to disappointed customers and declining sales.

Fortunately, there’s a risk-free way to cut costs without sacrificing the quality of your customer experience. Group purchasing organizations (GPOs), like SB Value, partner with national suppliers as a “middleman” of sorts to negotiate wholesale pricing and advocate for their members. In other words, catering professionals can save time and money by placing orders through a GPO.

Worry there may be a catch? There are a lot of misconceptions about GPOs, so let’s clear the air and address the common myths surrounding this type of organization.

Myth: GPOs sound too good to be true 

Fact: Reputable GPOs are free to join with no strings attached.

Savvy business owners know to look out for opportunities that are “too good to pass up,” so it’s understandable that a GPO may arouse some suspicion. Believe it or not, there is no catch. While GPOs are newer to the catering and events industry, they work off a business model widely used for centuries in other sectors, including agriculture, electronics, and healthcare. 

By nature, GPOs are designed to prioritize relationships over profits, which is why they are free to join. However, skepticism isn’t always a bad thing when it comes to potential business partnerships. Before joining a GPO, do your homework and ask questions to evaluate an organization’s customer service, response time, and supplier network.

Myth: Joining a GPO isn’t worth my time.

Fact: A GPO will save you time in the long run.

Time is an event professional’s greatest asset. Naturally, you’re probably wary about signing up for anything that involves a lengthy onboarding process. Instead, you’d prefer something quick to set up and start producing results. While joining a GPO does take time, it’s probably not as much as you think. You can become a new member and place your first order within hours, earning more savings straight from the gate. You’ll also appreciate knowing that trustworthy GPOs can reduce the time you spend researching, negotiating, and purchasing goods by providing local support on demand.

Myth: A GPO will limit my purchasing choices.

Fact: GPOs broaden your sourcing options.

If you already have a reliable food supplier, you may hesitate to venture away and try something new. But rest assured that you don’t have to stop working with your favorite provider! Whether it’s a local farm or a regional distributor, you can continue purchasing from them while taking advantage of other savings opportunities through your GPO. There are no restrictions on how you purchase through a GPO, so you can maintain your industry relationships while expanding your access to new inventory.

Myth: I don’t need a GPO because I already get good deals.

Fact: GPO membership can add to your existing savings.

Just because you save on meat from your go-to butcher doesn’t mean you shouldn’t look for deals from other sources. With a GPO negotiating on your behalf, you can get bulk discounts on items you may never have thought of seeking savings for. By amassing the collective buying power of thousands of members, GPOs provide bulk rates that a single company wouldn’t access through a supplier. If you already enjoy good deals from your existing providers, imagine stacking even more on with the help of a GPO.

For many caterers, a GPO membership with an organization like SB Value is an easy and advantageous way to save money without taking on unreasonable limitations or hidden fees. If you’re looking for new cost-cutting strategies to boost profitability, consider taking advantage of the savings and support from GPO membership.

Clint Elkins is the V.P. of Sales for SB Value, a Group Purchasing Organization that helps culinary professionals save an average of 17% on every food order. Membership is 100% free. No hidden fees. No extra work. Just extra profits. See how much you can save on your next food order when you become an SB Value member. Request a quote today.