BWA Buying Group – Q & A
As we begin to develop the buying group we are prepared to answer any questions you have. Below is our FAQ’s to date, if you need any aspect of the Buying Group to be clarified let us know.
Question: Will my data submitted for the Buying Group ever be sold to someone else. Can you confirm this will not ever happen?
Answer: We can assure you that this will never happen. Le Groupe 4-CB has been managing Octo Purchasing Group for over 30 years, counting 67 members today and programs with over 400 suppliers. None of the confidential information from within the Octo Purchasing Group has ever been used for anything else.
Question: Will our rebate come from the supplier or if one exists, the distributor? Would we have to switch distributors if that is the case?
Answer: Rebates usually come from the manufacturer. Manufacturers representatives are paid by the manufacturer with a percentage of their sales (usually around 3-5% commission) and can’t afford to pay a rebate to members. You can also have a “buy-sell” representative or distributors that would be selling manufacturers products directly to your members. In that case, they would issue a rebate program and pay the rebate to members.
Follow up Question: Thanks, what about in the case of Richelieu? They are a distributor for most things, how do rebates it work with them?
Richelieu is a manufacturer, importer, and distributor of hardware products. We have a rebate program as if they were manufacturing 100% of their products. Same with a company called BMI. They are importing all their products from Asia and are not a manufacturer. We still have a rebate program with them.
We can have a rebate program with a manufacturer if they are selling direct. If they are not selling direct and distributing their products through a network of distributors or Buy/Sale Agents, we would have a rebate program with them, but we can’t have both.