BiggerPockets Buying Power?

Question

With the number of member on Bigger Pockets growing by leaps and bounds on a daily basis, I was wondering if somehow we might be able to utilize this growth in members and translate it into buying power.  Perhaps we might be able to get a discount at local or box stores that specialize in home improvements/building products.  Perhaps we can also harness the power in numbers to get discounts for Bigger Pockets Members for the purchase of online items too such as appliances, cabinets, countertops, and even specialty items.  It would be great to get bulk pricing and only purchase one or two items.  A buyer's co-op would be awesome!

Mike T. · Answer

@Joshua Dorkin

Our small local REIA has negotiated a 2% rebate on all purchases at home depot, 30% discount on all paint and supplies at Sherwin Williams, 20% off rentals.com so it will be awesome to see what a group like Bigger Pockets can achieve!

@Sandy Uhlmann You are definitely onto something!  I can at least verify the discounts we receive from Listsource.  I originally setup up an account online last week, put together a list and checked my price per lead which came out to almost 0.18/lead.  I had read a post on BP that quoted .08/lead, called them, told them I was a member of bigger pockets and they setup a new account for me which provided 0.08/lead, which also included the equity selection!  I saved over $250! Thank you BP!

Ann Bellamy · Answer

@Mike T.  Absolutely.

There are a couple of guys in MA who are trying to put together a buying club for real estate investors.  They were pre-sellling a membership.  One of the two is an importer, and can get granite in pre-cut and polished 8' lengths for $11 and $12 per foot, and of course virtually any product where the savings are significant.

The issue was that they were having trouble:

1.  Getting enough people to prebuy a membership without seeing any product

2.  Getting enough people together to pay for an entire container of one product.  (The warehousing issue mentioned above is part of that)

Last I knew, they were working on a physical presence - a store with warehousing capability.

Mike T. · Answer

@Ann Bellamy Good information, nothing to be sorry about.  Thanks for the clarification! Regardless of the negotiator, the discounts are still a testament to the power of numbers.

Ann Bellamy · Answer

@Mike T.  those discounts are negotiated by National REIA and passed on to the members of the local REIA if the local REIA pays it's dues to National REIA.  You can get those same discounts at almost all REIAs that belong to NationalREIA across the USA.  Sorry to have to let you know that.

Chuck Catchings · Answer

I'd like to chime in on the buy Chinese topic. This is done everyday all day long. I have a 5 year background in the physical commodities business. One of my good friends actually went into the monument business and all his monuments, granite slabs etc come from China. Setting this up is not hard, you just have to start up a trading company, understand all the infrastructure, terminology etc. It's probably easier to get trade funding than a loan from a bank for real estate.

The main issue I see with this idea is that you would have to set up a warehouse in a central location which maybe isn't that hard to do but shipping cost will be the killer. Shipping cost here in the US is crazy but again I'm sure this could be worked out as well. Look this isn't a new concept or idea for that matter. I would venture to say it's already being done so that may be the way to go and get a discount from an already established warehouse, worth looking into none the less.

By the way how many people are on BP now? Seems that BP could carry some weight here with all these people coming on here on a daily basis. I tell anyone and everyone that it's the best bar none RE forum.

Bill Gulley · Answer

@Sandy Uhlmann  we've already been through Chinese insulation! Granite slabs would have been the last thing I'd think of, I'd think logistics would be a real issue.

I can see and know we could get signs, banners, home welcome gifts, anything printed, embossed, hats, work and casual clothing, gadgets for advertising such as cards, pens, pen-pencil sets, calculators, watches, phones, really any small item for home, auto or business and promotional novelties. I know because one of the largest promotional companies with walk-in or internet access sales is willing to consider BP discounts nation wide.

Not sure if Home Depot would give discounts to their target market.

I can see an association being formed too. I'd say any national insurance company would entertain insuring thousands of properties, but forming an association for the sole purpose of buying insurance is a no-no in states so you'll need a mission, like promoting investor education or some-such.

I'm sure you can get vacation package discounts, theme park and show tickets, cell phone plans.....an endless list I'm sure when you have thousands of members. :)

Sandy Uhlmann · Answer

I know this won't be a popular idea for those who believe in buying American made, but China has some awesome products for rehabbers that could be obtained at a fraction of the costs that we pay here in the US (especially helpful with higher end products, slab granite, ect....) but they require volume purchases and logistics might be a nightmare.  Does anyone have any insight into this?

Joshua Dorkin · Answer

We do use the BP buying power to negotiate breaks and discounts for our users on various products and services, however we can do MUCH more.  2014 will bring much more . . . that said, if anyone here has connections to companies whose products/services would bring value to BP and our members, please PM me.  Thanks all!

Bill Gulley · Answer

Sandy, welcome to BP!

There are endless possibilities, I've kinda brought that up with @Joshua Dorkin

T-shits to refrigerators, credit cards, hotel deals, rental cars, heck, we could open our own bank!

Need a coordinator who isn't greedy, an administrator could be a full time job and grow into a staff.

I know Josh has plans and is quiet, but I see all kinds of possibilities when a large group, 1,000s are involved.

If we'd get organized law makers may even pay attention.

You're elected Sandy, what do you have in mind, can we get a discount out of St. Louis from the Bud folks?  :)

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