Discover how GPOPlus is harnessing this concept to advance small businesses, level the playing field, and tap into a combined $5 Trillion market potential.
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Inflation is back. It’s back in a major way.
The consumer price index for all items rose 0.6% in January, driving up annual inflation by 7.5%. That marked the biggest gain since February 1982 and was even higher than the Wall Street estimate.
It’s taking its toll on everyone…from manufacturers to businesses to the consumer.
The cost of healthcare is a major hot-button topic…
With all this inflation one would think healthcare costs are spiraling out of control due to the current inflation but…they are not. Healthcare costs are up only 2% while economy-wide inflation is at 7%.
You can thank the 120-year-old business model for helping hold those costs down.
At the same time, we’ve got a nasty case of shrinkflation
We’ve all felt the sting of inflation at the grocery store, but for 2022, we’re seeing ‘shrinkflation.’ That’s higher prices combined with smaller products.
Think about it…you buy a nice big bag of potato chips. When you get home and rip it open it’s 95% air with a handful of chips scattered at the bottom.
Same bag size. A lot less snacking.
According to the publisher Dworsky:
Crest 3D White went from 4.1 ounces to 3.8 ounces
Fun size Milky Way bags that have shrunk from 11.24 ounces to 10.65 ounces
Aleve has also gone from 100 tables to 90
Gain detergent has gone from 165 ounces down to 154
The Small Business world is really feeling the pinch…
It’s crazy. Small businesses are getting hit so hard by inflation that they are struggling to even afford to advertise on Amazon to stay competitive in the marketplace.
Imagine if there was a way to access the same goods and material pricing as the big-box stores? That would be one quantum leap ahead in leveling the playing field and GPOPlus is working hard to make that happen.
GPOPlus: The right company, in the right place, at the right time.
As the business cycle matures and ages, it goes through phases, just as people do. Right now there is consolidation going on in many industries and the economy in general.
Particularly healthcare and surprisingly the fledgling CB-D market.
Market conditions like these offer companies like GPOPlus (OTCPK: GPOX) a unique opportunity to thrive. Not only that, but they can also provide businesses much-needed price relief and expertise by implementing a powerful 120-year-old business model.
The Group Purchasing Organization (GPO)
A Group Purchasing Organization is a system or platform that allows any business to join a group of buyers who are interested in the same goods and services. Businesses can take advantage of the collective buying power of a large group to get discounts from vendors.
Save me the money…
Sourcing motivates vendors to give GPO members discounted pricing. Businesses save on average 20-25% on products and services through group purchasing. They also save time (which is money) in gathering data, interviewing vendors, and choosing suppliers. (9)
Show me the money!
GPOs can collect administrative fees that are paid by the suppliers that GPOs oversee. Some GPOs collect participation fees from the buying members, and some may do both.
These fees can be a percentage of the purchase or set as an annual flat rate or can be a one-time payment that’s paid upon joining the GPO.
Members take part based on their purchasing needs and their degree of confidence in what should be competitor pricing consulted by their GPOs.
GPOPlus is even disrupting GPOs?
This Las Vegas-based company is not your run-of-the-mill GPO. The company is wisely carving out a piece of this gargantuan GPO market by identifying underserved industries, segments, and markets then developing specific GPOs around them where there is little to no competition.
The love for this model by small business is flowing. That’s because GPOPlus has low minimum order quantities (MOQ) which enable small and mid-sized companies to participate with larger corporations. Finally a level playing field for the little guy!
HealthGPO is a division of GPOPlus. They offer quality proven products at discounts (usually substantial discounts) without having to place substantial orders.
You see savvy companies like GPOPlus consistently push to maximize growth, profitability, value, and find opportunities.
So where better to target than the lowest hanging fruit, or where the entire concept of GPOs began? That’s the healthcare industry through HealthGPO.
Oh and here’s a statistic that will absolutely astound you. 97% of hospitals purchase through GPOs!
We’re looking at a whopping $59.7 BILLION pool of business potential
Healthcare Finance reports, Group purchasing organizations save the U.S. healthcare system up to $34 billion annually and will reduce healthcare spending by nearly half a trillion dollars over the next 10 years.
GPOs reduce supply-related purchasing costs to hospitals and nursing homes by 13.1 percent compared to providers who do not use GPO services, the authors said. In addition, GPOs generate billions in Medicare and Medicaid savings.
The analysis is based on national expenditure data along with survey responses from healthcare providers that use GPO services and represent a total business volume of $59.7 billion.
While GPOPlus is just getting started, HealthGPO is pioneering a niche opportunity in a massive market that’s ripe for this type of innovation.
And even if this adapted GPO model could capture a measly one percent of that $59.7 billion business volume – it could mean somewhere in the area of $597 million in potential business. And with an average contract administration fee between 1.22% and 2.25%, that could mean potential base revenues of up to $13.4 million.
So it’s not a stretch to believe this tiny Las Vegas upstart could soon stun the investment community.
AdWeek reported that, after CB-D’s explosive 562% growth in 2019, brands now face an “extinction event.” They say a new report estimates up to two-thirds of brands could fail despite the category’s positive long-term outlook.
But doom and gloom it’s not. CB-D is still a very hot space, with sales expected to grow from $5 billion in 2020 to $17 billion by 2025.
Once again, we see the leadership at GPOPlus doing something very smart in creating the one and only cb-dGPO.
This will help stave off the predicted “extinction event” for many small companies by saving tens of thousands annually on hundreds of products with cb-dGPO’s negotiated vendor contracts.
But here’s the kicker, there will be ZERO volume requirements.
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With the industry going through severe consolidation, (17) this has all the potential to be a phenomenally successful business model.
CB-D quality ranges drastically from supplier to supplier with no standards currently in place. Ultimately, a company never really knows what they are going to get.
In addition, companies just don’t have the time and resources to do everything, from sourcing, formulating, manufacturing, testing, registering, branding, marketing, etc. is a whole lot of work.
As the industry matures, which is still a way off, companies like cb-dGPO can be a lifesaver. Not only will they be able to lower costs but ensure the quality of the product.
In a skyrocketing $17 billion market, there is a whole lot of money on the table. This is the absolute genius of the 120-year-old GPO business model.
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