If you own a small or medium-sized business, you don’t always have to haggle with your suppliers personally to get the right price.
By joining a buying group, you can combine your purchasing power with other organizations in your industry to purchase more and negotiate better prices, rebates, contracts, and supplier terms.
For entrepreneurs considering signing up, group buying organizations operate across various industries in Canada. Here’s a closer look at the major types of buying groups and how they work.
What Is a Buying Group?
A buying group is a collection of independent businesses that work together to purchase services or products. They team up to pool their buying power and obtain better prices, discounts, and agreements with suppliers. More purchase volume means greater leverage, which leads to more favourable terms than operators could get when negotiating on their own. For example, a diner owner may not be able to purchase enough food, beverages, or cooking equipment to qualify for the same rebates as a huge restaurant chain. By joining a group buying community, particularly a foodservice purchasing group, the restaurateur can access discounted pricing for raw ingredients based on the combined purchasing power of the members. The Canada Revenue Agency recognizes buying groups and classifies them as a group purchasing arrangement. They provide guidance on how group-buying transactions are treated for GST/HST.1. Foodservice Buying Groups
Food-related businesses, such as restaurants, cafes, and bars, usually buy food, beverages, packaging, cleaning products, and other supplies regularly. Because they buy in large quantities, a small price increase or decrease can affect their profits. If you’re in this business, you can consider joining a foodservice buying group to pool your purchasing power with other establishments.Groupex
Groupex is a trusted foodservice group buying group with over 5,000 members across Canada. The organization has more than 35,000 programs available for operators. Our programs cover anything from food to uniforms and technology. With 40 years of industry experience, Groupex works with over 300 suppliers, giving you access to volume pricing, monthly rebates, and other useful supplier programs. Learn more by visiting the official Groupex website.Foodbuy Canada
Foodbuy is another major foodservice buying group operating in the Great White North. As a group purchasing organization (GPO), Foodbuy aggregates member purchases to provide money-saving benefits for its partners. The GPO is a division of Compass Group, a leading food services provider in many countries outside Canada.2. Retail Buying Groups
Hardware stores, specialty stores, independent retailers, and other merchants may join a retail buying group for its benefits. With their combined buying power, retail buying groups can help independent stores and retailers compete with larger chains. They can arrange beneficial terms for equipment, merchandise, and supplies. In some cases, store members may gain access to preferred vendors and specialty products they couldn’t otherwise.Access Moore
This is one of Canada’s largest buying groups for retailers who sell flooring, window, and paint products. Access Moore offers discounts, rebates, and business services. Member hardware stores are given access to hundreds of home improvement products and equipment suppliers.Distribution Canada Inc.
Established in 1981, Distribution Canada aims to support “independent Canadian grocers.” The group’s membership has since expanded to include wholesalers, convenience stores, distributors, and small groceries.Find Foods
Fine Foods is a comprehensive retail buying group with many programs and services, including advertising, custom merchandising, and practical sales assistance. The group primarily serves convenience retailers and independent groceries.3. Healthcare Buying Groups
Buying groups aren’t limited to foodservice and retail. Healthcare facilities need a wide range of goods and services to operate, from medical devices, protective equipment, medication, cleaning supplies, and even food. Smaller clinics, centers, hospitals, and other healthcare organizations may benefit from combining their demand and purchasing much-needed medical and sanitary products in large volumes.Mohawk Medbuy
Mohawk Medbuy is a non-profit buying group specializing in healthcare shared services. This includes sourcing, procurement, pharmacy services, analytics, capital equipment, and other supply chain functions.HealthPRO Canada
HealthPRO Canada is a national healthcare group contracting provider for a range of healthcare categories. Founded in 1996 in Ontario, it has around 2,000 members and manages billions of dollars in procurement contracts.4. Public Sector Buying Groups
This buying group serves government bodies and publicly funded organizations like school boards, local agencies, educational institutions, and some non-profit organizations. A public sector buying group can help with buying items and services such as construction equipment, vehicles, school supplies, technology, office materials, IT support, and facility maintenance.Canadian Collaborative Procurement Initiative (CCPI)
The CCPI is a government buying group initiative launched in 2015. Its primary goal is to aid provincial, territorial, municipal, and other publicly funded agencies with purchasing tools to save money and buy more goods. Eligible CCPI participants can use rates prenegotiated by the Canadian government, saving both time and resources.Canoe Procurement
An award-winning non-profit buying group, Canoe Procurement Group of Canada is composed of municipal associations working together. Their programs are extensive, covering sectors like agriculture, finance, education, automotive, and more.5. Agricultural Buying Groups
The high cost of farming supplies and equipment can make it harder for farmers and agricultural retailers to manage their finances. Agriculture often requires high upfront expenses, which significantly impacts profitability. Farmers and retailers may consider joining an agricultural buying group, such as Farmers of North America and Sollio Cooperative.Farmers of North America (FNA)
A buying group that started in 1998 in Saskatchewan, Farmers of North America aims to maximize profit for its Canadian farmer members. It does this by breaking supply chain monopolies. Some of its many practical programs and services are lower rates for essential inputs, such as fertilizers and crop protection products. FNA also provides delivery services.Sollio Cooperative Group
Sollio Cooperative Group traces its roots to three major farmer cooperatives in Quebec that merged in 1922. They’ve since evolved to become a fully integrated cooperative network representing more than 120,000 farmers. In addition to aggregating buying power, the cooperative also offers cutting-edge agronomic expertise and digital tools.6. Hospitality Buying Groups
Hotels, motels, restaurants, resorts, and similar guest-service establishments need a reliable supply of food, beverages, linens, toiletries, cleaning products, furniture, and maintenance supplies. Because these expenses come up regularly throughout the business year, discounted pricing and rebates can free up more room in their operational budget.GroupEx
Groupex goes beyond food and beverage savings to help your hospitality business grow. We serve the broader hospitality sector by delivering paper and packaging, cleaning and operational supplies, and equipment and smallware. The group works with various leading tech and financial suppliers, such as RiverCity Innovations, Sadie, and Push, to help you work faster and smarter. Key Account Consultants provide personalized guidance to member operators. Local consultants are available across Canada to support your business whenever and wherever you are.Entegra Procurement Services
Established in 1999, Entegra Procurement Services features several savings and purchasing programs for hospitality-related enterprises. They negotiate and broker lower prices for food, supplies, and furniture. Apart from discounted rates, Entegra also offers practical services, including digital data, analytics, reporting tools, and an AI-powered shopping assistant.7. Automotive Buying Groups
Independent businesses like car part distributors, engine machine shops, and automotive retailers can secure lower wholesale prices and better vendor terms through automotive buying groups. The following are examples of automotive buying groups in Canada:Bestbuy Distributors Limited
A Canadian buying group and warehouse distributing company, Bestbuy Distributors Limited serves the interests of independent automotive, industrial, body, paint, and aftermarket distributors. With a history dating back to 1953, the company is a member of Federated Auto Parts Group. Bestbuy Distributors currently has over 150 active store and wholesale members.Automotive Aftermarket Repair Organization (AARO)
AARO is a not-for-profit organization. It primarily supports independent automotive repair businesses with training programs, important business resources, and membership programs. While not a traditional buying group, AARO offers select benefits, insurance support, legal assistance, and preferred prices.How Do Buying Groups Work?
Buying groups typically operate in many ways, depending on the members’ business goals. Many of these organizations focus on negotiating better contracts and bargaining for discounted prices. Others provide centralized catalogues, logistics arrangements, and other essential business support. Here’s how it usually works:- Businesses join a buying group.
- The group combines the members’ competitive purchasing power and negotiates prices and other benefits on their behalf.
- Depending on the specific arrangement, members purchase from approved suppliers or use pre-negotiated contracts.
- Partners and members get the agreed benefits (lower prices, discounts, etc.).
What Are the Benefits of Joining a Buying Group Canada?
Joining buying groups in your industry comes with many benefits.- Higher Purchasing Power: This is one of the major advantages of buying group membership. Combining micro-demand from multiple operators gives the entire group more leverage to negotiate prices, terms, and exclusive deals.
- Reduced Cost for Purchases and Services: Pooling orders with other small businesses in your niche means you’re more likely to get bulk discounts usually reserved for larger corporations.
- Vetted Suppliers: Many buying groups work with many reliable vendors. This lowers your risk of purchasing low-quality products or services.
- Rebates and Incentives: Some groups offer cash-backs and rewards based on the member’s total purchase volume. This provides additional savings the longer you’re a member.
- Less Administration: Centralizing your procurement through a buying group eliminates a huge chunk of your work.
