Group Purchasing Helps To Increase Sales

By Author: Nick Carter
Total Articles: 334

In “group purchase” based sales organization, vendors create a custom service package, which could have been priced at a rate lower than the normal value and get them listed in deal-or-group purchase. When the customer buys it, the company charges a small percentage of it and pays the remaining amount to the vendor.

Does the vendor lose out by creating such packages? No. The simple reason is that vendors spend a percentage of their revue every year to build brands and win new customers. In the group purchase organization, the same money is spent directly on sales and to win new customers. Hence, selling products or services here is actually not losing but another way of adding customer base. A sizeable percentage of customer bases have realized the value buying services through group buy sites such as Gporewards.com and the market remains largely open and the company have to do a lot to carry the message to the customers. Especially in many developing countries, the reach of this model has been less than ten percent of total customer base and they are finding it hard to penetrate into the market largely untouched by ecommerce before.

Group purchase sites currently concentrate on sectors such as healthcare, beauty care, finance, travels, fitness and entertainment as the key target areas. Other sectors could emerge soon as and when market potential is tapped. Vendors are willing to work in this model as this medium provides reasonable customer. Customers are finding this as a new way of availing services and get introduced to new service providers. Group purchase organization is standing in between trying to spread the word and tap into the market potential. This is great news in general to the market and economy. For relatively new vendors who just started their business, this model works very well as there is no investment needed to increase sales.

The article is written by the person having keen interest in organisation managment and suppies.Hence Gporewards provides Group Buying For Businesses and Cost Reduction techniques.