The Power of Group Buying
The recent emergence of two prominent national buying groups made up of smaller owner-managed businesses has changed the balance of power and ultimately given not only FM Companies but also independent Cleaning Contractors a choice of three, rather than the one previous option when it comes to national business.
Those two consortia are Nationwide and the Jangro Group. Both have a turnover in excess of £150m and both organisations are very successful in their own right, but both have taken a different approach to supplying the market: whilst Nationwide has chosen to stick with traditional branded manufacturers, Jangro has decided to develop its own quality brand.
Group Buying Brings Big Savings
Perceived value is what makes any brand successful; large companies will spend tens of millions of dollars shaping the mind-set of the consumer and making their brand number one. The money spent has to come from somewhere and this is normally reflected in the price of the product.
The Jangro tack has been very different from others in the marketplace, the group approached quality manufacturers and set about developing its own brand, the idea was to match the existing brand leader’s quality but sell at a much more realistic price point. This policy paid off and has seen Jangro grow into the largest independent group of janitorial supply companies in the UK with 43 members turning over in excess of £150m.
The Jangro product range has been supported by The Jangro Solution which is an online training package covering all aspects of training health and safety.
The unconventional route Jangro pursued means it has been perceived by many as a maverick. This situation has been not helped by adverse propaganda emanating from those who would benefit from the group’s demise; it painted a picture of low quality products from a group of amateurs, how wrong they were.
Like every successful business Jangro has had to reinvent itself: four years ago it took the brave step of introducing a limited range of branded products. Because of the group’s undoubted success some of the bigger brands were now courting favour with group offering more realistic pricing which in turn meant Jangro could offer more competitive pricing on branded products.
However, some manufacturers still insist on pricing levels that are totally disproportionate to production costs and in these cases the group has pursued relationships with more forward thinking manufacturers, with brands such as Katrin, Rubbermaid and 3M.
The service levels provided by Jangro have been another major factor in the success of the group; the consequence of having an owner manager in every branch is undoubtedly a contributory factor and should not be underestimated.
Manufacturers who dictate who you can buy from by their pricing policies are doing nothing for competition in the UK janitorial market. A local or national buyer of janitorial products now has three choices in terms of their supply chain and that has to be good for business.
For more information
www.janitorialexpress.co.uk (Jangro's London Distributor)
For more information email email@example.com or Call 020 7700 3322