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post #1 of 1 Old 04-25-2011, 04:42 PM Thread Starter
BT
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Group Buys

The general idea behind a Group Buy (GB)is to gain a larger discount from a vendor through a larger number of sales on a targeted item. Basically, the power is in the numbers. Many vendors have tiered pricing structures that allow for better discounts for larger quantities being sold. For example;

Total Sold--%Discount
1-10.....None
10-25.....15%
25-50.....20%
50+........25%

^, This example is similar to the pricing structures that I have seen from a few vendors.

NOW...Here is a general guideline of how it all works.

1. GB interest thread is started for 1-2 weeks to let people know about product, etc.

2. A tally of the total number of committed buyers is collected to try and determine where the pricing will be set. This is critical as many companies lock the price on the expected amount of sales

3. After the gauging interest period is over, the GB will be opened by the vendor hosting it to allow all the buyers to make their payments. Normally, a period of 1-2 weeks is allowed for payment.

4. The vendor hosting the GB will take in payments until the minimum number of orders to meet the expected final tier of sales is met.

5. Once that number is met, the vendor will begin shipping out the committed orders.

#4 above is CRITICAL for everyone to understand. The vendor is EXPECTING a certain number of sales and offers the pricing based upon that. If the amount of people who actually pay for the item is less than the amount who originally committed, then the vendor has the right to knock the discount down to the tier that was met for all sales.

In my example above, if the vendor expected 28 sales and offered a 20% discount, yet only 20 people paid, then the 15% discount would be used.

Conversely, if the total number of sales throws the total into a higher tier for discount, then the vendor is still only obligated to honor the tier pricing that was EXPECTED for the GB.

In the example above, if the vendor expected 38 sales and offered a 20% discount, but received 52 total sales, then the vendor is only obligated to honor the 20% discount. An accurate initial count is critical for determining where the GB pricing will end up for everyone.

The point here is that IF you are going to sign up for a Group Buy, do not do so unless you are 100% committed to following through with it. By signing up for a GB and not following through, you are hurting your fellow forum members...possibly in the discount they may receive, but also the credibility of the forum as a whole for being someplace that vendors would like to offer GBs.

If you have any questions about the process, please feel free to ask questions to any of the moderation staff or the person running a particular GB.

Now that we have that out of the way...
Many of our supporting vendors offer Group Buys from time to time. We are also going to try and gain some interest from some other reputable companies that offer products not available from our current supporting vendors. We do not want to create a conflict of interest here.

TIA, and hopefully we will see some good GBs this year!




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Last edited by BT; 04-27-2011 at 04:36 AM.
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  Nissan Forums : Nissan Forum > Nissanclub.com Marketplace > VENDOR SALES & OFFICIAL GROUP BUYS

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