We all do our best to deliver the best guest experience we can while maximizing profitability. But after buying the quality furnishings, bedding, flat screen tvs, subscriptions and amenities our guests have come to expect, on top of rent/mortgage, maintenance costs and taxes, there may be very little profit leftover.
The problem is that, while we’re trying to run a business, with each purchase we make, we’re treated just like any other retail customer. While we’re spending hours searching for discounts at numerous websites and stores and waiting for sales to come around, major hotel groups have established relationships with distributors offering them everything from tvs and beds, to toiletries and linens at more than 80% off retail price. Additionally, while hotel groups are getting furniture built to withstand the wear and tear of thousands of guests, and lifetime replacement warranties, hosts have simply not had access to this kind of quality.
While this seems unfair, from a seller’s perspective it’s perfectly rational–retail customers have little bargaining power, so even if it costs just $200 to produce a mattress, they can still charge $1,000 for a profit of $800. But when they’re approached by a hotel group ready to buy 1,000 beds from the lowest bidder, even if making the sale requires that they sell at just $280 each, they’re happy to do so and eager to satisfy these customers, because their profit from that transaction is ten times as high at $8,000.
Our problem as hosts is that we haven’t been able to leverage our collective bargaining power as one of the largest and fastest growing industries–until now that we’ve come together as a group purchasing organization, HostGPO! Group purchasing organizations act as collective bargaining agents, securing significant discounts for their members in exchange for the large volume of sales their members can generate. While other industries have formed GPOs, such as Sourcewell for non-profit and educational institutions, and the Healthcare Supply Chain Association for healthcare providers, HostGPO is the first and only GPO to serve the vacation rentals industry.
HostGPO will secure the best deals from leading brands and emerging innovators on everything vacation rental managers need, including furnishings, appliances and electronics, home goods, kitchen, bed and bath, business services, insurance and art. We won’t just have the best prices; we’ll establish relationships with these providers who will cater their products and services to hosts’ unique needs; and having these ongoing relationships with trusted providers will save hosts from wasting countless hours bargain hunting and product testing. (We’re offering free membership with no fees to the entire hosting community, because the more hosts making purchases through our site, the better deals we can negotiate for the entire community.
So please, sign up for free and encourage your fellow hosts to do the same!