WHAT WE DO – Association Model
In our experience working with associations, we have learned that there are three objectives driving the decision-making and strategic priorities for most associations:

• Relevance: We are competing for our members’ time and attention. In what ways can we provide value to our members to make our association indispensable to our membership?
• Retention: Association memberships are often one of the first line items eliminated during cost cutting measures. In what ways can we provide products and services that will help to maximize our year-over-year member retention rate?
• Revenue: Our traditional revenue sources are fragile. What products and services can we provide to our membership that will generate unencumbered revenue to support our ongoing operations?

Many associations turn to group purchasing programs as an “easy” way to generate revenue to support association programming. The challenge is that implementing and managing group purchasing programs successfully is a lot harder than it looks. Common frustrations include:

• It’s time-consuming: Effectively designing, procuring, launching, growing, managing, and servicing group purchasing programs requires significant staff resources and takes away from other association priorities.
• Revenues are less than expected: Associations often have high revenue expectations from group purchasing programs and are disappointed (at both staff and board level) when actual revenue falls far short of projections.
• Members don’t use the programs: Participation rates are often very low. There frequently is an assumption that, “If we build group purchasing programs, our membership will simply use them.” This outcome is rarely the case as membership participation in group purchasing programs requires constant communication and marketing efforts.
• Suppliers are difficult to manage: Successful partnerships with your suppliers require expertise in the supplier’s industry, airtight supplier contracts, full knowledge of supplier interactions with the association’s membership, and direct experience in working with and managing suppliers of group purchasing programs.
• Members can achieve the same or better pricing on their own: Suppliers of typical association group purchasing offerings (such as car rental, overnight delivery services, etc.) have standard terms and conditions that they make available to associations. Consequently, your members often have access to the exact same programs you are offering through their participation in other associations. Truly valuable group purchasing programs must be custom-built and require deep expertise in sourcing, marketing, and industry knowledge. Does your association have these resources in-house?

Sourcing Office has developed a fully-managed, turn-key solution to provide group purchasing programs to associations across the country.