Group purchasing organizations (GPOs) can sound “too good to be true,” especially if you’ve never used one before. This guide breaks down how they actually work and how they help small businesses save money, time, and stress.
We’ve collected the most common questions small business owners ask when they first explore group purchasing. Whether you’re new to the concept or just looking to understand it better, this guide will help you make an informed decision.
This is the most common first reaction, and it's completely understandable. When something sounds exceptionally beneficial, skepticism is healthy.
The reality: There's no catch, but let's explain the economics so you understand why it works.
Group purchasing organizations aggregate purchasing volume from thousands of businesses. That collective volume gives leverage with suppliers that individual small businesses can't achieve alone.
Suppliers benefit because they're getting substantial volume through a single negotiation rather than thousands of individual small sales. They're willing to offer better rates because the economics work for them.
Mighty Business operates on a model where we earn fees from our supplier partners, which means there's no cost to you to access better rates.
The "catch" people worry about doesn't exist. But understanding the economics helps you see why it's sustainable.
Great question, and we love the directness. GPOs typically earn revenue in one of two ways:
Think of it this way: Suppliers would rather give GPOs better rates and pay a small administrative fee than negotiate thousands of individual small contracts. The economics favor both the supplier and your business.
There are over 600 group purchasing organizations in the U.S. alone. (Precoro, 2025) They all survive because the model benefits everyone involved.
Then you're ahead of most small businesses, and that's excellent.
But here's what we'd suggest: verify.
According to research, organizations using GPOs often save 10-25% annually across various spending categories. (Amazon Business 2025 GPO Guide) If you're genuinely getting rates that match or exceed group purchasing rates, you're doing exceptionally well.
However, most businesses discover they're not getting as good a deal as they thought once they see group purchasing rates.
The conversation costs nothing. A quick comparison reveals whether you're genuinely getting competitive rates or whether you could improve.
Absolutely not. GPOs are actually most beneficial for small and medium-sized businesses.
Large enterprises already have procurement departments and negotiating leverage. They get enterprise pricing because of their individual volume.
Small businesses typically pay retail or near-retail rates because they lack leverage individually. GPOs level the playing field, giving small businesses access to enterprise-level pricing.
There's no minimum size. Whether you're a solo entrepreneur or a 100-person company, if you're buying business services, you can benefit.
For many categories, immediately.
Pre-negotiated contracts mean you can start using group rates as soon as you decide to. There's no lengthy implementation or complex onboarding.
Some categories (like insurance or services with annual contracts) might require waiting until renewal. But many services can be switched immediately.
No. You always choose what’s best for your business.
You use group purchasing when it delivers value. You negotiate individually when that makes more sense for specific needs.
Think of it as having both options available. Best of both worlds.
About 80% of business purchases are for common services where standard contracts make sense. For the other 20%, suppliers often customize within group agreements, especially when they know volume is coming through a GPO.
Translation: flexibility when you need it, efficiency when you don’t.
Replace with: Calling around costs time and lots of it.
Group purchasing is different because:
Leverage: You're not one small business asking for a better rate. You're backed by collective volume of thousands of businesses.
Pre-negotiation: Suppliers have already agreed to rates and terms.
Contract terms: Not just pricing. Payment terms, service levels, renewal terms, and other conditions are pre-negotiated to be favorable.
Time: Getting quotes, evaluating options, negotiating terms, reviewing contracts - that's 10-20+ hours for each major vendor. Group purchasing eliminates most of that time investment.
Ongoing optimization: GPOs continuously renegotiate with suppliers as market conditions change. You benefit from that without ongoing effort.
Most common business services and supplies:
A real-world example: A healthcare facility saved over $100,000 annually by consolidating vendors and using GPO contracts across multiple categories. (Virto Commerce, 2024)
Most GPOs, including Mighty Business, have no long-term commitment required.
You're not locked in. You use group purchasing when it delivers value. You can stop anytime if it's not working for you.
Some vendors within GPO networks might prefer annual contracts (which you'd likely encounter in individual negotiations too), but the GPO membership itself typically has no binding commitment.
Transparency and verification.
Reputable GPOs will show you:
You can also:
According to Una's research, GPO members typically save 18-22% annually. (Una Complete Guide to Group Purchasing, 2025) Those aren't outlier numbers. That's typical.
This varies by GPO, so ask specifically.
At Mighty Business, you get:
We view our role as your strategic partner in procurement, not just a discount provider.
Most GPOs serve multiple industries (horizontal GPOs), while some focus on specific sectors (vertical GPOs).
Common industry-specific GPOs exist for:
Horizontal GPOs like Mighty Business serve all industries.
Mighty’s Marketplace is always expanding. If you don’t see an offer or supplier category today, there’s a good chance it’s in progress. We continuously evaluate new partners based on member feedback and demand. Mighty's Marketplace is a dynamic and ever-growing platform, continuously evolving to meet the diverse needs of its members.
We are committed to an ongoing expansion of our offerings, which means that if you don't find a specific offer or supplier category available today, there's a strong likelihood it's already in the pipeline. Our dedicated team is constantly evaluating new partners and services, a process driven primarily by valuable member feedback and emerging market demand.
15. "Why haven't I heard about this before?"
Group purchasing has existed for decades, it’s just new to many small business sectors.
There are over 600 group purchasing organizations in the U.S. (Precoro, 2025), but awareness varies significantly by industry and region.
Healthcare has relied on GPOs for years, saving over $30 billion annually through collective contracts (CMS). Other industries are only now discovering the same model.
That's changing rapidly. According to the MetLife & U.S. Chamber Q3 2025 Index, small business confidence is at a record high of 72.0. Successful businesses are getting more strategic about procurement, and group purchasing adoption is accelerating.
Replace with: Group purchasing isn’t a gimmick; it’s a proven model that’s helped small businesses cut costs and compete for decades.
The question isn't whether group purchasing works. Research consistently shows 10-25% savings. (Amazon Business, Una, Precoro)
The question is: is it right for your specific business?
The only way to answer that question is through conversation.
Ready to explore whether group purchasing makes sense for your business? Contact Mighty Business today to speak with one of our authorized sales representatives. A quick conversation will give you clear answers about what's possible for your specific situation.
No pressure. No commitment. Just information to help you make smarter decisions.
Mighty leverages the buying power of millions of small businesses to unlock significant savings and deliver growth for its members.