What is a Buying Group?
A buying group, also called a Group Purchasing Organization (GPO), is a collective of independent businesses that combine their purchasing power. By leveraging the combined volume of participating businesses, a buying group negotiates better pricing, stronger supplier terms, and expanded access to programs that are often unavailable to individual businesses alone.
For dealerships, service centers, and collision shops, a buying group helps you gain cost and operational advantages while maintaining full control of your business. Participation strengthens your independence rather than taking it away.
How Buying Groups Operate
While each GPO may have unique programs, most follow a similar structure:
• Aggregated Purchasing: The combined buying volume of all participating businesses is leveraged to negotiate stronger supplier programs.
• Negotiated Agreements: The GPO works with trusted suppliers to establish favorable pricing and service terms.
• Flexible Participation: Businesses decide which programs they want to use. There is no obligation to change vendors or adopt every program offered.
• Support and Access: GPOs often provide additional resources, like supplier vetting, cost analysis, and program coordination, to simplify operations.
Why Businesses Use Buying Groups
Businesses often join a GPO to gain benefits such as:
• Better Pricing and Terms: Access negotiated supplier programs that typically require higher volume.
• Time Savings: Less time spent sourcing and managing contracts.
• Broader Supplier Access: Opportunities to work with vendors or programs you may not reach individually.
• Flexibility and Control: Participation is voluntary; you choose what fits your needs.
These advantages make GPOs a proven strategy for businesses that want to stay competitive without sacrificing autonomy.
Why DealerShop: Your Automotive GPO Partner
DealerShop is the only nationwide Group Purchasing Organization (GPO) built specifically for the automotive industry. We work with dealerships, service centers, collision shops, and related businesses across the country to make procurement easier and more cost-effective.
Businesses choose DealerShop for more than just group discounts. We serve as a trusted procurement partner that helps reduce costs, strengthen supplier relationships, and improve operational efficiency.
What you can expect when working with DealerShop:
• No-cost participation: Access negotiated supplier programs with zero fees or hidden costs.
• Reliable supplier programs: Established agreements with vetted partners across all major automotive categories.
• Smooth onboarding: Easy program access and transitions with no disruption to your daily operations.
• Focused value: You keep your business priorities front and center while we identify cost-saving opportunities.
• Proven performance: Businesses regularly achieve 10 to 30 percent average savings with measurable, repeatable results backed by years of industry experience.
Frequently Asked Questions About Buying Groups
Are buying groups common?
Yes. GPOs have been used for decades across industries like healthcare and manufacturing. They are a proven way for independent businesses to gain the advantages of scale.
Do I have to change vendors?
No. You choose which supplier programs make sense. Many businesses maintain existing vendor relationships and use additional GPO programs where they see value.
What if I already have negotiated pricing?
DealerShop reviews your current pricing during the spend analysis. Our programs can supplement your existing arrangements or validate that your rates are competitive. The decision to use any program is always yours.
What happens if I stop using the buying group?
Participation is flexible and voluntary. If you decide to stop, there are no penalties. You maintain control of your business and supplier relationships and keep any improvements or efficiencies achieved while participating.
How is DealerShop different from a franchise or buying co-op?
DealerShop participation does not require you to give up control of your business or join a franchise. There are no ownership stakes or brand affiliation requirements. You choose which programs make sense for your business.
Does working with DealerShop require a fee?
No. DealerShop does not charge to access its programs. We focus on making it easy for automotive businesses to gain the benefits of collective buying.
Take the Next Step
DealerShop combines the strength of collective buying with the flexibility and focus your business needs. If you are ready to reduce costs and gain a competitive edge, contact us today to request a complimentary cost analysis and see what DealerShop can do for you.