Rebate Programs vs. GPOs

As we enter an era where cost savings are more important than ever, it’s a great time to open up the discussion of resources for caterers where they can cut back on spending. If you’re an industry pro, you’ve likely heard of rebate programs or GPOs. A common misconception, however, is that the two are created equally. In reality, there are a number of differentiating factors that sets GPOs apart from rebate programs (and even factors that set GPOs apart from other GPOs).

Given this, we want to break this down in simpler terms to help caterers make an educated choice for their business.

What’s the difference?

To start, let’s define a GPO, or a group purchasing organization. This is simple yet incredibly effective, and it’s exactly what it sounds like – a group of companies working together to get better prices and service than any single company could get on their own. If you put it into the perspective of larger businesses like Ford, Lowe’s, or fast food chains, they typically get better deals on pricing purely because of their buying power.

On the other hand, a rebate program works as a reward program, meaning you’re receiving money back on products or brands that have an offer tied to them.

Things to take note of when choosing a program

There’s no one-size-fits-all resource when it comes to saving money on products and services, as every business and caterer has different needs. However, it’s important to read up on each organization that promises you a discount, especially during a difficult time when you may need to pinch your pennies a little harder than usual.

One thing to take into consideration is how quickly you need the savings, as well as how married you are to a certain brand or quality. As we mentioned, rebate programs often only apply to a specific product or brand, so this can force you to potentially choose between a lower price or a shift in quality. Additionally, some rebates are tracked quarterly and may be paid to you as far as 6 months out from your initial purchase.

However, with a GPO, you aren’t limited to a brand and you’ll be saving money with the combined spending leverage of your company along with many others.

Benefits that you need right now

Again, we understand that the current need for caterers to save money is long overdue, and the future of your business may depend on cutting unnecessary fat from your budget. So, beyond what rebate programs and GPOs such as SB Value can offer you financially, here are a few things that may tip the scale.

Opt for a program that has accessible customer service. We really take pride in our onboarding process, and part of that means setting our clients up with a local representative for them to chat with for support.

Avoid any sort of organization that’s going to lock you into a long-term contract or charge you fees, and make sure you have the freedom and flexibility of purchasing what you want. Whether that’s protein, paper products, or condiments, it’s wise to go with a resource that’s going to be reliable and evergreen for you.

By saving money here, you have the freedom to start putting away some funds for areas of your business where you really need them. Now’s the perfect time to consider joining and investing in your future.