Buying group to net members big savings

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The saying that there's strength in numbers has taken on new meaning in Manitoba with the launch of the First Nations Buying Group (FNBG).

For the province's 60-plus First Nations, hundreds of political, economic and cultural organizations, independent entrepreneurs, and the 100,000 Aboriginal residents in the province, it will mean big savings on everything from office supplies, long distance rates and computer equipment.

Launched in 1998, the group's goal is to link First Nations individuals and groups. One of its first members, the Assembly of Manitoba Chiefs, is a vocal supporter of the idea.

"It's a great idea," said Grand Chief Rod Bushie. "The FNBG will help us gain some significant financial savings for our people."

It's a vision pioneered by company president Mike Birch.

"We realized that if we buy together as one group we could have a great deal of bargaining power."

Since its inception, the group has successfully negotiated a rebate of two per cent on all long distance charges for both business and private calls for First Nations' members.

Birch said for a community of only 450 people, the rebate is estimated to hit $3,500 every year, and that's only the beginning.

National office supply company, Grand and Toy, has also inked an agreement with the group providing for discounts of up to 40 per cent off catalogue prices and a two per cent rebate paid by the group to its members.

Ccorporate partners include Xerox, and Henry Armstrong printing services. The group has also recently inked another discount deal with Powerland Computers, said group spokesperson Gary McLean.

At present more than one-third of the province's bands have joined the group, as well as three tribal councils and a number of other Aboriginal organizations.

The response by First Nations has Birch and McLean confident that everyone will have joined in by year's end.

"It just makes sense for First Nations to try and maximize every dollar they spend because for every dollar they save on supplies or telephone expenses they can pump those dollars into other programs," said McLean.

For First Nations and their organizations the only requirement for membership is a $100 annual fee, which is simply deducted from any rebates the First Nation or group receives from the buying group at year-end.

For Birch and McLean, the recent developments are only the tip of the iceberg as other Aboriginal groups and organizations in Ontario and Saskatchewan have started to express an interest in joining the group.

"The way things are going we'll probably be expanding the group across Canada," said McLean.

"As the buying group membership increases so will the level of discounts we will be able to negotiate and the level of rebates we can offer.

One of the most intriguing areas of the buying group is the fact that individual Aboriginal people can apply for membership as well, whether on reserve or living in major urban areas such as Winnipeg.

McLean says private individuals can receive the same discounts and rebates as First Nations and Aboriginal groups.

"What we are developing is a way for everyone from individual families to First Nations organizations to get some real savings. Mainstream retailers have been developing all sorts of membership clubs and discount incentives in mainstream society and our group's goal is to provide our people with their own membership and discount benefits."

It's this type of innovative business thinking that First Nations will be using to fashion their own form of self-reliance and self-sufficiency, adds McLean.

"This represents a fundamental shift in thinking for First Nations that sustainability and self government also includes economic initiatives where we can make our mark and showcase our entrepreneurial skills and spirit," he said. For the buying group the initial success in developing strong relationships with retailers and corporate suppliers indicates the time is ripe to have the buying group branch out into building an construction supplies, vehicles, groceries and deals with department stores.

"Our goal is to get our members the best prices possible on every conceivable consumer item, and we do that by developing partnerships and working relationships with companies that are prepared to look at First Nations business in a more progressive way. That has to include being able to turn some of those savings back to the communities and groups through rebates," said Birch.