So how does club buying work in practice?
And why are we at Don’t Do A Dodo so keen on clubbing together to fight climate change?
Quite simply, because it’s the best way for homes and families to get great value while protecting themselves from poor suppliers and products.
Let me outline the approach and then explain why it’s so powerful.
- Don’t Do A Dodo target the most effective carbon savings steps homes and families can adopt.
- We work with a number of suppliers to create great offers at group scale with major discounts.
- Group members examine the offers and read the supplier ratings and reviews then request a formal quote if they’re interested.
- Suppliers confirm pricing according to order size (the bigger the group, the better the savings and we expect savings of between 20 and 40%).
- Members opt in, selecting the best deal for them, then the group places an order with a deposit.
- The supplier delivers and installs the order for all members. Don’t Do A Dodo monitor snagging issues and will intervene when necessary.
- Members rate the supplier and product performance and pay the balance.
- Don’t Do A Dodo publish reviews and work with suppliers to improve customer experience and value.
- The supplier works hard to improve their performance and be better than the competition.
- Don’t Do A Dodo work hard to accelerate market growth and attract new suppliers into the market to keep up with rising demand and improve value.
So how can you save large amounts and still get premium quality with happy suppliers? Can everybody really win?
Well yes, they can and it’s all down to economics.
There are two well-known principles involved: “the economies of scale” and “the laws of supply and demand”.
Economies of scale are most commonly observed by volume discounts, such as multi-pack buys at the supermarket.
What leads to such savings? They are not given by way of a thank you for a larger order. Rather, they are savings the supplier’s operations passes on.
For energy supplies, savings from our group orders come from many factors, including:
- massive sales and marketing cost savings (we do that for them)
- significant travel time reductions (we give them many customers in a small geographical area)
- risk mitigation savings (as supplier does not need to add a risk margin as they know installation variation will average out across a large population of orders)
- product savings (because they get a volume discount from their supplier)
- huge administration savings (the supplier’s back office can get the paperwork done more easily as we help them)
…and so on. These all add up, you get the point.
The laws of supply and demand can also help.
Savings here come from making sure we avoid getting into a situation where it’s a seller’s market with a lot of demand not being met by available supply.
We work with industry and local business forums ensuring growth in the supply chains (especially local suppliers) matches growth in the market.
The other major benefit to the buying groups is that their order size and reviews are given maximum amplification via our website, meaning suppliers will focus on being seen to do a great job or, otherwise, the next order for 100 solar panels will go to their competitors.
This is real consumer power. It’s also good for the supplier as it grows confidence in the market.
A growing market is good for society as it means more and more people are lowering their carbon footprint while employing local people. Which all adds up to resilient communities.
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