Purchasing groups

ihatetractors

We are involved in one and must say it's a great job, you get fert and seed delivered in bulk and at a slightly redeuced price again say 10%. It works by everyone pays in X amount at sart of year and at end pay whats owed, works well imo.. And farmer A is over it this year(final accounts) then B,Then C etc... Th eauld fellas currently considering approaching his dairy disscusion group about one to buy medicines etc.. in bulk. Say one crate/pallet of pour on from vet for near cost price etc(is that legal?).
Was reading in England purchasing groups are very common and are used to purchase machines etc cheaper and get service contracts cheaper also, do ye think this would work well over here?? hell say even just 3-4% off all costs could be a saving of 10k for some lads :eek:

bogman_bass

Our local won Got a great deal with the bank for its members. This was 10 years ago but lads who were getting loans for machinery or stock were saving a fortune. also get in detergents for the parlour

C0N0R

ihatetractors wrote: »

We are involved in one and must say it's a great job, you get fert and seed delivered in bulk and at a slightly redeuced price again say 10%. It works by everyone pays in X amount at sart of year and at end pay whats owed, works well imo.. And farmer A is over it this year(final accounts) then B,Then C etc... Th eauld fellas currently considering approaching his dairy disscusion group about one to buy medicines etc.. in bulk. Say one crate/pallet of pour on from vet for near cost price etc(is that legal?).
Was reading in England purchasing groups are very common and are used to purchase machines etc cheaper and get service contracts cheaper also, do ye think this would work well over here?? hell say even just 3-4% off all costs could be a saving of 10k for some lads :eek:

What do you do if farmer A owes an amount he won't pay?? Or is it a case of you put more in at the start of the year than you would need?? I used to deal with purchasing groups for hardware stores and the problem I had was the group wouldn't honour another members debt. Definatly think they are a good idea for supplier and farmer, farmer gets a better price on the back of the supplier knowing they will get their money and they are also shifting bulk.

johngalway

C0N0R wrote: »

What do you do if farmer A owes an amount he won't pay?? Or is it a case of you put more in at the start of the year than you would need?? I used to deal with purchasing groups for hardware stores and the problem I had was the group wouldn't honour another members debt. Definatly think they are a good idea for supplier and farmer, farmer gets a better price on the back of the supplier knowing they will get their money and they are also shifting bulk.

If it were me, I wouldn't commit to a deal without 100% of the funds upfront.

C0N0R

johngalway wrote: »

If it were me, I wouldn't commit to a deal without 100% of the funds upfront.

If you were the supplier of you yourself as a farmer?? Either way I agree with you! But I know a few farmers who would be more than happy to string out some extra credit for as long as possible.

johngalway

C0N0R wrote: »

If you were the supplier of you yourself as a farmer?? Either way I agree with you! But I know a few farmers who would be more than happy to string out some extra credit for as long as possible.

If I was the guy in charge of the group at that time. I'd make it crystal clear I wouldn't be hung out for another mans inability/reluctance to pay. Anyone not willing to go with that, gets excluded by the date set for funds to be in place.

ihatetractors

C0N0R wrote: »

If you were the supplier of you yourself as a farmer?? Either way I agree with you! But I know a few farmers who would be more than happy to string out some extra credit for as long as possible.

It's a fairly substantial amount up front, written into to the contract otherwise pretty much group has right to reposes capital to make up balance. As they're all part of a tillage discussion group and so would know if a lad was under pressure there's a credit facility kind of, has interest on it though.

C0N0R

ihatetractors wrote: »

It's a fairly substantial amount up front, written into to the contract otherwise pretty much group has right to reposes capital to make up balance. As they're all part of a tillage discussion group and so would know if a lad was under pressure there's a credit facility kind of, has interest on it though.

That sounds fair enough, and property setup to. I suppose you have to have it done right in order for companies to take you seriously. Does the group get a rebate of any sort for the group as appossed to the farmers?

reilig

Isn't the biggest problem with purchasing groups the lack of credit available to farmers and the 10% interest that they charge per month on unpaid bills?

The biggest purchasing group in the country for farmers insist on a Direct Debit from your account within 28 days.

I looked at joining last year for to buy fertilizer but I found that I could negotiate just as good of prices off local fertilizer suppliers if I went straight to them with my cheque book before delivery and paid upfront. This had 2 advantages. I didn't have to take a full load of fertilizer and I kept my business local and supported local jobs.

I can see why some Dairy Farmers would sign up to them for Dairy products. But as a suckler and sheep farmer I found that much of the dosing and animal products can be bought cheaper in other places which include Farmrite, Christies direct and local vets.

ihatetractors

C0N0R wrote: »

That sounds fair enough, and property setup to. I suppose you have to have it done right in order for companies to take you seriously. Does the group get a rebate of any sort for the group as appossed to the farmers?

Not actualy sure, il find out der when i get home this evenin