So I decided to not follow the crowd and start pressing the flesh again. All this Twitter, Facebook, Linkedin, etc makes one feel like a caged Lion. Anyhow, I starting dropping into local small-mid size businesses in my community. As I looked around for where the opportunities may exist I noticed many had the Clic Stic from Bic at their front desk. Over a weeks period of time I found five organizations that purchased the same pen. So I ran some numbers for their review. Trailing is what I found.
Assumptions:
- Each buyer purchases 500 pens
- Buyers are not members of iProcureDirect
- Each Buyer is currently not Collaborating
- Each Buyer can buy within the same buying period
First, if the Buyer was a member of iProcureDirect there would be an immediate procurement savings of 50% .
Non Member Pricing:
| 300 | $0.72 |
| 500 | $0.70 |
| 1000 | $0.68 |
| 2500 | $0.66 |
| 5000 | $0.64 |
| 10000 | $0.62 |
iProcureDirect Member Pricing:
| 300 | $0.36 |
| 500 | $0.35 |
| 1000 | $0.34 |
| 2500 | $0.33 |
| 5000 | $0.32 |
| 10000 | $0.31 |
Secondly, when the members leverage one each others budget or collaborate additional savings are realized. With each of the five (5) Buyers procuring 250 units of the same pen together their volume adds to 2500 units. This allows each member to enjoy additional savings of 8% for a total member savings of 58%.
iProcureDirect Member Pricing w/ collaboration boost:
| 300 | $0.36 |
| 500 | $0.35 |
| 1000 | $0.34 |
| 2500 | $0.33 |
| 5000 | $0.32 |
| 10000 | $0.31 |
As I close out this Blog entry ask yourself
- What does my organization procure that others may be?
- Could my business benefit from 58% savings if we procure pens?
- Being a member of iProcureDirect what would my savings be on the promotional products, print, corporate incentives?
- Maybe iProcureDirect membership IS a good idea?
I thank you for taking time to read this entry and wish you a productive day!
Best Forward,
Mike Kaczmarek
