Loyalty pledge earns rewards
Loyalty pledge earns rewards
FARMERS in one of Waless newest co-operative buying groups are getting discounts of up to 40% on some products.
But they must pledge loyalty to make full use of the deals struck on products needed for their type of farming. They also give a written undertaking to keep prices secret.
"We believe that price confidentiality is absolutely essential, so members are fined £500 if they discuss discounts with non-members," says Ray Powell, chairman of Eppynt Farmers Group. "A lot of people in the supply chain hate the idea of farmers buying co-operatively and are ready to use information to bring groups down."
Mr Powell, who runs 1500 ewes and 60 sucklers at Upper Blaenmilo, Aberedw, Powys, says group members have been very pleasantly surprised by the size of discounts obtained on a range of products that includes feeds, straw, fertiliser and fuels. Members can also get cheaper tyres and building materials.
"Farmers are generally weak sellers and they know they have to counter this by being ruthless at buying requisites. We have closed membership at 47 for one year, and there will be an upper limit based on how much business we can handle."
Purchasing manager Susan OSullivan honed her negotiating skills buying aircraft parts. She now works part-time for the group.
With grants and practical help from the Welsh Development Agency and the local Business Connect office she has established a computer database and central invoicing system. One of her early tasks was to buy fax machines and answer phones for members who did not own them. Five members have also bought computers through the group and five more are on order.
"I am truly independent and members trust me to get the best possible deal for everyone, while suppliers know I will compare their quoted prices and conditions fairly, and will not use quotes to play one off against another." *
Ray Powell and OSusan Sullivan… Big discounts through new group.