OPERATIONS Lumeez/AdobeStock Flex Your Buying Muscles How Independent Pizzerias can buy like the Big Guys I t is one of the many challenges for independent pizzerias. You are competing for the customer's pizza dollar with franchises of large corporations who can purchase the same ingredients for less money. Let's face it: customers factor the price they are paying into their buying decision. As do you. What if you could buy your ingredients at the same price as your competitor? This would allow you to sell your pizza at the same price, eliminating price as the decision factor in your customer's buying decision. Now you can sell pizza based on your (much better) recipes and flavors. 26 / PIZZATODAY.COM / FEBRUARY 2024 Wouldn't that be a game-changer? Before we get into how to increase your buying power to match that of your large-chain competitor, I would be remiss if I did not address the elephant in the room. The independent pizzeria owner is oft quoted as saying " The customer will pay more for quality " . I submit to you that these words are 'fluff', and not a true point of differentiation that will allow you to compete by charging a higher price. If you do successfully differentiate yourself from your competitor, it will never completely supersede price. So, let's get to work on how you can increase By Dan Collier your buying power. Here is a blueprint you can use to flex your buying muscles. It involves three new terms you will want to add to your vocabulary: Primary Vendor Distribution Agreement (PVDA) Group Purchasing Organizations (GPO's) Manufacturer Deviations Primary Vendor Distribution Agreement A Primary Vendor Distribution Agreement is a contract signed by you and by your distributor (thehttp://www.PIZZATODAY.COM