How Buying Groups Can Supercharge Educational Sales for Distributors

The educational sector presents a unique set of challenges for distributors of cleaning products and equipment. Characterized by budget constraints, fluctuating funding streams, and a complex decision-making hierarchy, navigating the educational market often requires a multifaceted approach. This is where buying groups emerge as a powerful tool, empowering distributors to overcome these obstacles and cultivate thriving partnerships with educational institutions.  

Distributors working with a buying group are often looking to overcome some of the unique challenges that the education market presents. 

For example, educational institutions grapple with constant budgetary pressures, often prioritizing core academic needs over cleaning supplies and equipment. Fluctuations in government funding further complicate matters, making budget planning a constant source of uncertainty for customers in educational facilities. Purchasing decisions within the educational sector also often involve multiple stakeholders — facility managers, custodial staff, and administrators with varying priorities and budgetary limitations participate in the selection process, extending the sales cycle and adding complexity to securing contracts. 

Educational institutions may also already have established vendor relationships, making it difficult for new distributors to gain a foothold. Distributors entering this market must compete effectively against existing suppliers with a track record of meeting the specific needs of schools and universities. 

Bridging the Gap 

Buying groups offer a strategic solution to these challenges, providing distributors with a competitive edge in the educational cleaning market. These groups, composed of independent distributors with a shared focus on specific industries, leverage collective purchasing power to negotiate better pricing and terms with manufacturers. This translates into significant benefits for both distributors and their educational facility customers, including the development of a problem-solving network. 

“Networking has been and still is a beneficial component of our organization as we strive to adapt winning game plans from one market to another,” says Michael Chiappe, president, California Janitorial Supply Corp., San Jose, California. “Members are willing to share with other members market strategies that have been successful for them, in hopes that another member may duplicate the same success.” 

Through collective bargaining power, buying groups also secure more favorable pricing for cleaning products and equipment. Distributors can then pass on these cost savings to educational institutions, making their offerings more competitive and attractive.  

Streamlined procurement is another advantage of buying groups. Buying groups often provide access to online procurement platforms that streamline the purchasing process for educational facilities. These platforms offer centralized access to a wide range of cleaning products and equipment, simplifying the selection process and saving valuable time for school administrators and facility managers. 

Access to market research and trends is also a great selling point. Buying groups often possess specialized knowledge and resources catering to the educational sector. They can provide distributors with valuable insights into market trends, budgetary concerns facing educational institutions, and preferred cleaning protocols within the educational environment. This knowledge equips distributors with the tools necessary to tailor their marketing strategies and product offerings effectively. 

“The DPA Buying Group enables our members to be competitive and informed when approaching these opportunities, with sustainable and cutting-edge products and cost-savings strategies for facility managers,” says Zac Haines, CEO, DPA Buying Group, Cincinnati, Ohio.  

When it comes to networking and establishing best practices, buying groups help foster a network of like-minded distributors. This network allows for the exchange of best practices, successful sales strategies, and valuable market intelligence. Distributors can learn from each other's experiences, improving their overall effectiveness in the educational sector. 

“DPA hosts an annual buying and networking conference where our members partake in 1-on-1 meetings with the group’s preferred suppliers. These meetings and presentations help the group’s distributors learn about the latest product technology and trends,” says Haines. 

Marketing to Educational Institutions 

Buying groups can empower distributors to develop targeted marketing strategies that resonate with educational cleaning decision makers. 

“Fundamentally it comes down to ‘trust,’ and, in my opinion, ‘trust’ is developed over time through consistent and credible actions,” says Haines. “Many DPA distributors have developed such strong relationships in the educational space that the facility managers essentially let the distributor to write their own purchase orders.” 

Initially, distributors should focus on developing a budget-friendly approach. In a budget-conscious environment, highlighting cost savings and long-term return on investment becomes crucial. Distributors should emphasize the durability, efficiency, and environmentally friendly aspects of their cleaning products and equipment, demonstrating how these choices contribute to better value for education institutions. 

Many educational institutions also prioritize products and equipment that adhere to stringent safety standards and comply with specific environmental regulations. Armed with research provided by buying group partners, distributors can showcase their expertise in these areas, ensuring decision makers feel confident that the proposed solutions meet all compliance requirements. 

Targeted communication is another marketing strategy distributors can utilize as part of the larger group. Buying groups often provide access to databases containing valuable information about educational institutions within a specific region. Leveraging this data, distributors can personalize their outreach efforts, sending targeted mailers or attending industry events relevant to the educational sector.