ADVICE FOR GROUP BUY ORGANIZERS

[Elanlover]

As more Group Buys are organized and completed the participants, organizers and those merely observing learn what works and what doesn’t. LEC has posted some “rules” for organizing Group Buys which we expect all members to follow. In addition to these rules we want to offer some “advice” to the organizers of these Group Buys that may help to ensure your project runs smoothly and with as few headaches as possible.

These aren’t rules but are simply some suggestions based on the success of many Group Buys that have been conducted in the past.

1) Be Specific & Detailed:
Its hard to get people interested in a group buy if they don’t know exactly what they are getting and what they are paying for it. Provide detailed specifications, features lists, accurate delivery dates and firm pricing wherever possible. As a Group Buy organizer it will, in most cases, be in your best interests to have as many people as possible participating in order to reduce costs, increase features, etc. Providing firm details will help people clearly understand what they are signing up for, eliminate confusion and remove roadblocks to joining your Group Buy.

2) If You Can't Be Specific & Detailed:
If you can’t provide a firm cost, date or specification then state that the information in your Group Buy post is preliminary only and may change in the future. Ask for “interest” as opposed to a firm commitment to buy since people are unlikely to commit if they don’t have all the facts. You may even wish to ask people for their input like what they would consider spending on the item in your Group Buy or what features it should have to get a sense of how viable your project will be and how many people might be interested.

A quantity of “interested” buyers doesn’t represent a commitment to a supplier but should be enough to get reasonably firm, if not completely firm, costs and delivery dates, etc. The final number of participants may change based on how different the firm numbers are from the initial estimates so plan for the possibility that some people will drop out once the final details are known.

3) Determine If This Is A Limited Run:
Some Group Buys will be limited to a one-time purchase while others may represent an opportunity to buy the product long after the original Group Buy has been completed. This is something you may want to discuss with the supplier. Will the item in question be available for order after the initial run has been completed? If so, how will the cost change? Will there be a minimum quantity for additional orders after the initial run? How will buyers order from the supplier in the future? These are all things you should discuss with the supplier and negotiate in advance if possible.

Usually there are cost advantages to the initial Group Buy run due to higher volumes. You may want to state (if you can) what the details are for purchases after the initial run. A significant savings for being part of the initial run may help to drive up participant numbers and further reduce costs. If your Group Buy is a limited run set a cut off date by which no further participants will be allowed to join. This creates a sense of urgency for people to indicate their interest as well as allowing you to provide firm numbers to the supplier.

4) Secure Copies Of The Designs:
If appropriate, try to get copies of all design work, diagrams, specifications, manuals, etc. Why? Lots of reasons.

- someone may want to revive an old Group Buy of yours but you aren’t interested in running it
- perhaps the supplier is no longer in business
- perhaps the supplier did a sub-par job and a new supplier needs to be found
- the supplier’s costs for the project have increased
- someone may want to revive an old Group Buy but the originator isn’t a LEC member anymore

There are lots of other reasons including just being smart about it and not handing over complete control to the supplier. Keep copies of the details and feel free to pass them along to LEC as well where we will also keep a copy on hand. Keep in mind that not all suppliers will offer up all the specs especially if it involves their proprietary knowledge, processes, materials or software. But, it never hurts to ask.

5) Payment Terms:
In general, there’s two ways payment can be made to a supplier. As the organizer, you can accept payment from the members and pay the supplier in one lump sum. Or, the participants can deal directly with the supplier for payment. If possible, its best to let the participants deal with the supplier directly. This frees the organizer from the task of having to collect the total amount from all participants and then pay the supplier themselves. It also protects the organizer from errors in calculations, lost funds, etc.

You’ll have to negotiate this and a payment method with the supplier (PayPal, credit card, bank transfer, etc.) that’s acceptable to both sides plus who will cover the related payment fees (PayPal fees, etc.). State these details in the Group Buy thread. Also, try to avoid asking for deposits unless absolutely necessary. If so, obtain and post an image of the receipt from the supplier or keep the money in an account that the participants can “see” (you post copies of the statement for example). This will make the participants more comfortable with the idea of passing along thei hard earned currency for nothing more than the promise of a product to be delivered at a later date. As an alternative, LEC will be happy to hold on to any deposits if so desired.

6) Delivery Terms:
Delivery of the final goods can be arranged individually between the supplier and the participant or shipment of the items can be in some form of group delivery whereby participants in a region agree to have all the items shipped to one person who volunteers to redistribute them to the individuals once received. In some cases it makes sense to arrange a bulk delivery to a region as this can reduce shipping and import tax costs. However, it will take some analysis to see if the savings are enough to warrant the extra effort and time involved in redistributing the goods. A volunteer helps too.

Also, based on the negotiated payment terms (individual or one lump sum payment) the supplier may dictate the delivery terms. Be sure to have the delivery terms discussion at the same time as the payment terms discussion to avoid any last minute surprises.



As with all Group Buys, you as the organizer are assuming responsibility for the success of the project. Following the advice above may help you to run a successful and enjoyable Group Buy while providing a service to your fellow Elan owners (and to you as well)! Please review the Basic Rules For Group Buys thread as well.

Good Luck!