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Strength In Numbers

How leveraging a Group Purchasing Organization can provide club managers with cost management strategies to reduce operational costs while eliminating administrative burden. At no cost.

Golf has become one of the most popular sports in the world in the post pandemic era.

With clubs boasting tens of thousands of rounds annually, there has never been a better opportunity to capitalize on its popularity.

However, running a private or public golf club is not easy, and the costs can be significant.

One solution that has gained popularity in recent years is joining a group purchasing organization (GPO).

In this article, we will explore the benefits of GPOs for clubs and how they can help overcome common challenges.

What is a Group Purchasing Organization (GPO)?

A group purchasing organization is an entity that combines the buying power of multiple businesses to negotiate discounts and better terms with vendors.

By leveraging the collective buying power of its members, a GPO can help golf clubs reduce their costs and improve their profitability.

Why Club’s Should Explore Joining a GPO

Cost Savings

Clubs can benefit from significant savings on items such as foodservice purchasing, capital equipment, office supplies, course maintenance materials and more by joining a GPO.

For example, Club Capital has presented average savings of 8%-20%+ on their food program, even when the club is already working with an incumbent GPO.

Access to a Wide Range of Vendors

Joining a GPO can give clubs access to a broad network of vendors and suppliers, which can lead to more competitive pricing and higher-quality products.

Club Capital has over 3,500 vendor contracts with national coverage to fit the needs of clubs of any size.

Time Savings

Club managers and staff can save valuable time by not having to research and negotiate deals with vendors.

A GPO will take care of negotiating and managing contracts, freeing up time for other essential tasks.

Increased Buying Power

By joining a GPO, clubs can increase their buying power, allowing them to negotiate better deals with vendors and suppliers.

According to an article in Golf Course Industry Magazine, "GPOs can provide private clubs with benefits, such as reduced costs, improved purchasing power, access to better technology, and increased efficiencies. In today's competitive market, these benefits can make a significant difference in a club's bottom line."

Setting the Record Straight

It's understandable to be skeptical about the benefits of working with a GPO, as it may seem too good to be true.

However, it's important to note that there are no hidden agendas or catches when it comes to working with a reputable GPO or cost management consultancy such as Club Capital.

They exist solely to negotiate better deals for their members, and their success is dependent on the satisfaction of those members.

As Golf Digest notes, "The main advantage of a GPO is that the agreements are beneficial to both the supplier and the buyer. The supplier gets more business, and the buyer gets better prices."

In short, clubs can rest assured that working with a GPO should be viewed as a win-win situation, and there is no red tape or hidden fees. Just savings to be found.

Joining Club Capital can be an effective way for clubs to reduce operational costs, improve their purchasing power, and increase efficiency.

By leveraging the $130 Billion in collective buying power of its members, Club Capital can provide clubs with access to a wide range of vendors and products at competitive prices, freeing up valuable time and resources to focus on other critical tasks.

Club Capital is not a fee-based service. Your club will never receive an invoice for leveraging our services.

To learn more about how we can help eliminate sub-par margins at your club, contact us today

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