Buying and marketing groups have become common and widely accepted in product distribution industries, as well as even in some service industries. Buying groups or co-ops focus upon reducing the acquisition cost of products, thereby enhancing the ability of their members to compete with larger players. Marketing groups focus upon developing programs to assist their members in the promotion and sale of products. Some groups focus equally in the purchasing and marketing areas.
Whatever its mission, a well-run buying/marketing group creates economies of scale that not only benefit its members, but also benefit the public by reducing the pressure to increase prices, and, in many instances, result in lower prices. Sometimes the benefits a member receives from his group can mean the difference between survival or failure.