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Buying Groups for Small Businesses
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Posted On :
Jun-07-2011
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Article Word Count :
411
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Buying groups refers to a marketing strategy where goods and services could be purchased at a significantly lower price when a certain number of buyers are reached.
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Buying groups refers to a marketing strategy where goods and services could be purchased at a significantly lower price when a certain number of buyers are reached. The concept of buying groups is not new. This has been practiced by consumers and buyers as a method of moving their products faster and for people to buy goods at a discount price.
The origin of buying groups could be traced in China were buyers form collective groups to purchase goods and items in bulk. The use of this buying strategy has come into the limelight as e-commerce sites have emulated its practice to provide huge discounts in goods and services. It has also experienced a revival in China with the practice of Tuangou or “store mobbing.”
This practice of group purchasing or group buying is a reflection of the Chinese people’s attitude of bargaining for the best deals. The practice of purchasing large volumes of products is becoming a popular practice among mainland Chinese people. This is perhaps another reason why services and goods coming from China are one of the cheapest in the world as companies has focused their marketing strategy to selling more products by offering them at lower prices.
How can companies afford to sell their products at a lower price just because more people have agreed to buy it? Manufactures still manage to make a profit because bulk sales means that a marginal profit is multiplied by the sheer number of items sold. Rather than selling their products at premium prices and having lower sale numbers they are able to move their items faster out in the market.
The concept of group buying has certainly reached the mainstream as western consumers have begun embracing the concept. This could be seen in their use of e-commerce sites which promote the concept by allowing multiple people to signify their intent a product to drive the prices of items lower.
Although the use of online media is fairly new the economic principle behind this has been practiced for a long time. It remains to be seen if this could be practiced on a bigger scale but with the success of e-commerce sites like Amazon, it appears that the future is bright when it comes to buying in groups as part of a wider network. Services and business products are exposed in a way like never before, meaning that it’s a buyers’ market in the UK.
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Article Source :
http://www.articleseen.com/Article_Buying Groups for Small Businesses_63685.aspx
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Author Resource :
Find great deals on high quality products and services for your small business. Get money saving advice with our helpful articles. For more details about group purchasing or group buying visit http://www.huddlebuy.co.uk
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Keywords :
group purchasing or group buying, Group deals, cheap deals, group deal, deals of the day, small business deals, special deal,
Category :
Business
:
Business
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