What is a Foodservice Buying Group?

“A buying group is an organization made up of small businesses that band together so they can negotiate as a larger group with vendors to receive better pricing and terms on goods and services.”

Why does working with a dealer that’s part of a restaurant equipment buying group matter?

As members of the Strata restaurant equipment buying group, dealers are supported and backed by a nationwide network of foodservice equipment dealers and suppliers. Our members share one goal: to provide solutions and service operators’ needs. A partnership with a Strata foodservice equipment dealer guarantees operators connect to a local expert who keeps abreast of changing technology, is skilled in providing personalized product recommendations, unparalleled service, and always puts operators’ needs first.

How are buying groups formed?

Buying groups can be formed by a variety of organizations, such as trade associations, cooperatives, and purchasing consortia. They can operate in various industries, including healthcare, retail, manufacturing, and agriculture. The primary goal of a buying group is to help its members reduce costs and increase their purchasing power, which can lead to improved profitability and competitiveness.

How do you qualify to join a buying group?

Most buying groups will have a pre-qualification survey or questionnaire for dealerships to complete before they can join the group. Becoming a member of a buying group will usually provide long term business advantages and enhance your visibility within the industry you work in.

Why Belong to a Buying Group?

Business owners are always looking for ways to reduce expenses and workload, streamline efficiencies, collaborate with like-minded industry leaders, and ultimately stay ahead of the competition.
One of the best ways to solve all the above is to join a buying group or what is sometimes referred to as a group purchasing organization (GPO).
Buying groups can also help solve challenges such as: achieving year-over-year business growth, fighting compressed margins, competing geographically or against the internet, goal setting, recruiting and training of new sales staff, generating new business, gaining competitive advantage through marketing, remaining cutting edge by adoption of technology, access to more resources and working capital, and staying ahead of industry disruptors.

What are the benefits of joining a foodservice equipment and supplies buying group?

Purchasing Power:

As a member of a buying group, the purchasing power of several businesses is consolidated to be comparable to a large multinational distributor.
Negotiation:

The buying group can negotiate the best pricing discounts and form relationships on your behalf. Through a buying group, dealers can often access manufacturers that they may not have been able to on their own.
Increased Bottom Line:

In addition to better pricing, buying groups may seek to secure a range of other benefits for members, including special promotions and rebates.
Additional Cost Savings:

Net pricing with suppliers is already negotiated on your behalf, which allows a dealer to spend more time selling. Due to the large volume submitted to suppliers, dealers also benefit from lower minimums and reduced restocking fees. Buying groups typically also offer additional cost savings opportunities with recurring product promotions, logistics and freight programs, and special buys.
Lower Purchasing Risk:

Buying groups strive for longevity when it comes to keeping their dealer members a part of the group. Because of this, the pressure to best support the dealer is of top priority. To give members the best quality in suppliers, buying groups subject potential suppliers to a full vetting process which ensures the credibility and value of the supplier. In return, the dealers have a lower purchasing risk.
Streamlined Efficiencies:

Time is an asset. A buying group can make it easier to get everything you need from one place. Buying groups provide services for small businesses such as: centralized accounting, business development, succession planning, merger and acquisition advice, marketing, education and training, and more.
Centralized Accounting:

Overall, centralized accounting provides dealerships with a more efficient and effective way to manage their finances, helping them to reduce costs, improve decision-making, and ensure compliance with regulations.
Everything under one roof:

Strata manages the entire procurement process for your dealership, including invoicing, payments, and the reconciliation of rebates. This in-house service saves you the overhead of at least one full-time accountant or administrative person, each year!

Marketing:

Buying groups play a critical role in helping dealerships attract, engage, and retain customers, while also driving sales growth and building brand equity.
Simple Accounting:

Members make only one ACH transfer for all Strata vendor purchases. This not only saves you time and money but ensures you the accuracy of the dollars in your pocket.
Education and Training:

At Strata, we are passionate about empowering our dealer community with the training and education tools they need to sell more effectively. With our exclusive education and training opportunities, we help take the guesswork out of training your team, saving you time, and ensuring that you’re up to date on the latest product, sales, and industry education that will help increase your bottom line.
Networking:

Joining a buying group provides dealerships with opportunities to build relationships with other professionals in the industry. By attending events and meeting with other dealerships, suppliers, and industry experts, dealerships can establish valuable connections that can lead to new business opportunities, partnerships, and collaborations. Buying groups also allow members to share knowledge and gain valuable insights into how other dealerships are operating and succeeding in the market.
Access to Resources:

Networking can also provide dealerships with access to a wide range of resources, including industry publications, training programs, and mentorship opportunities. This can help dealerships improve their operations, grow their business, and stay ahead of the competition.
Building Brand Awareness:

Overall, joining a buying group can be a valuable way for dealerships to improve their brand awareness and grow their business. By leveraging the marketing resources and collaborative opportunities available through the group, dealerships can increase their visibility and attract new customers, ultimately strengthening their brand in the marketplace.
Support and Advice:

Joining a buying group will grant you access to some of the best support and guidance in the industry. This kind of support will help dealers improve their operations, reduce costs, and grow their business.
Community:

When you join a buying group, you become part of a community of like-minded individuals who share common interests and goals. This sense of camaraderie and mutual support can be a great source of motivation and inspiration, as you work together to achieve shared objectives and support each other in your business endeavors. Being part of a community can help you feel connected and invested in the group’s success, giving you the support you need to overcome challenges and achieve long-term success in the marketplace.

Find a Strata Dealer

VIEW STRATA’S VENDOR PARTNERS

HOW STRATA SUPPORTS OUR PARTNERS:

STRONGER TOGETHER

OUR PARTNERSHIP

As forward-thinking leaders & technology trailblazers, we grow our partner’s businesses for a competitive future – maximizing group purchasing to become pioneers in the marketplace, and ultimately, driving success to the end-users through access to the largest network of dealers and vendors across the nation.

UNSURPASSED PROGRAMS

LEVERAGE OUR PURCHASING POWER

Strata focuses on building close relationships with vendors to leverage purchasing power, enhance procurement services, and offer the best available pricing, cash discounts, freight programs, rebates and much more.

COMPREHENSIVE CENTRALIZED ACCOUNTING

SAVING DEALERS A FULL-TIME EMPLOYEE

Strata offers a comprehensive centralized accounting function, encompassing vendor invoicing, payment processing, and rebate management services. This allows you to devote more attention to customer service and equipment supply to your independent foodservice clients.

IN-PERSON & VIRTUAL EDUCATIONAL SEMINARS

OUR TRAINING AND EDUCATION GIVE YOU AN EDGE

With a strong pulse on industry trends, and armed with an array of educational resources, our dealers are at the forefront of commercial foodservice industry trends, products and innovations. Our dealers take part in live, hands-on vendor training and receive access to the most robust online education and training portal in the industry: Cutting Edge Online Training. Dealers also receive access to one-of-a-kind peer groups and sales coaching experiences.

MULTI-CHANNEL MARKETING PROGRAM

DRIVE TRAFFIC AND SALES

Strata has developed a multi-channel marketing strategy to provide dealers the tools they need to be successful.

Dealer partners receive access to high-quality, professional, and inexpensive print and digital marketing options. These help to enhance dealership image, gain credibility with restaurant owner end-users, and help drive traffic and sales to your showroom and website.

ANNUAL NETWORKING EVENT

BUILD LIFE-LONG BUSINESS ASSOCIATIONS

The Annual Conference is a highlight for members of our restaurant dealer group. The Annual Conference gives dealers the opportunity to interact with other dealers in the group, as well as the attending vendors. Many lifelong associations are developed during the conference.

TRAILBLAZING TECHNOLOGICAL SOLUTIONS

KEEP ABREAST OF INDUSTRY TRENDS

Strata’s fully integrated and interactive member website offers the information and tools that food equipment distributors need to grow a restaurant supply business.

SUPERIOR CUSTOMER SERVICE

OUR PARTNERS ARE THE PURPOSE OF OUR WORK

Our #1 priority is you. We believe in our services and hold ourselves to the highest standards. Our partners are the purpose of our work. We will devote ourselves to your success. You can count on us.

Our restaurant purchasing group members bring credibility to operator’s businesses by increasing positive perception among consumers and elevating visibility in the industry.

Here’s Your Wake-Up Call

Frequently Asked Questions

How Do I Join?

To learn more about membership requirements and the benefits of being in a group purchasing organization, please request an information packet here or call 720-361-1913 to speak to our sales representative.
How does your buying group give back to the community?

Our dealers and vendors united in 2018 to build a new kitchen that serves 33,000 charitable meals annually. $90,000 worth of foodservice equipment was donated by our members, at no cost. The actions of our partners truly make our communities “Stronger Together.”

Strata’s nonprofit, Cooking Up Better Lives, allows restaurant equipment dealers and vendors the opportunity to advance in corporate good and social responsibility. We provide an organized and national coordinating body for the foodservice equipment buying group industry to streamline, leverage and procure products and services to build a new kitchen at low to no cost.

To learn more, please visit our website: www.CookingUpBetterLives.org
What’s your secret to running a successful buying group?

People First. We listen and realize industry challenges and think forward to provide services and resources to channel that energy into directions of growth, opportunity and solutions to fit our membership’s needs.

Partners experience daily and direct access to our buying group team and experience our values first-hand. It is no secret that our success stems from having a strategic focus that is built on a customer-centric foundation.

We employ a talented and culture-oriented team who are driven to go one step further to relentlessly improve upon our member’s businesses.

And, of course, the true testament to our community is the time we take together to enjoy the journey.

(Company Values: People First, Customer Centric, Go One Step Further, Relentless Improvement, Think Forward and Enjoy the Journey.)
What does a partnership with Strata look like?

Our partners experience daily and direct access to our buying group team and experience our values first-hand. We see ourselves as an extension of each dealer’s success.
What sets Strata apart from other buying groups?

We are passionate about building and maintaining relationships in order to foster a community of growth. Our goals include driving mutual success and enriching the lives of our restaurant buying group partners with a customer-centric and people first attitude. Our community is our highest priority and that makes all the difference.
What are the benefits of joining Strata?

Our professionally-run management team challenges the status quo. As forward-thinking leaders and technology trailblazers of the foodservice buying group landscape, we grow our dealer and vendor’s businesses for a competitive future – maximizing their group purchasing to become pioneers in the marketplace, and ultimately, driving success to the end-users through access to the largest network of dealers and vendors across the nation.

We are an extension of each dealer’s success. Enabling competitive procurement strategies that seamlessly blend with each dealer’s personal touch.

Dealers enjoy access to best-in-class reporting tools, unsurpassed vendor programs, comprehensive centralized accounting services, online education through proprietary training platforms, in-person and virtual educational seminars, attendance to our coveted annual networking event and admission into the industry’s most diverse multi-channel marketing program.

Our vendor partners have access to our coveted network of committed, growth-focused dealers who value our vendor programs and drive volume loyalty.
Why should I join Strata versus remain an independent dealership?

Strata realizes industry challenges and thinks forward to provide resources and solutions to fit our members’ needs. Strata leverages its combined buying power to negotiate great programs that will help you compete with larger dealers and increase your bottom line.