5 Questions to Ask a Veterinary GPO Before Signing On
If you’re a veterinary practice manager or owner searching for a Veterinary Group Purchasing Organization (GPO), you’re likely hoping to reduce costs, improve operational efficiency, and streamline procurement. With so many GPOs on the market today, it can be tough to know where to start. Should you go with a GPO that focuses only on vet supply discounts? Do you need a vet GPO that bundles marketing and support services?
The result of having so many Group Purchasing Organizations is that the first or best salesperson wins. However, imagine you are going to a conference, such as Vet Together or VMX, and you want to learn more, or you start conducting a search online. What criteria should you use to determine what is the GPO best fit for your practice? Transparency is a core value at Vetcelerator, so we produced a guide to structure your questions and your thinking around Veterinary Group Purchase Organizations and related services. You can also check out our blog article about GPOs.
1) What is the Veterinary GPO’s Pricing Model?
Veterinary GPOs typically offer one of two pricing models: guaranteed vet supply discounts or volume-based rebates. When comparing your options, ask:
- Do you offer fixed discounts or tiered pricing/rebates based on how much I buy?
- What are your most common vendor partners, and how are prices negotiated?
- Can I see examples of average annual savings for clinics of my size?
Some GPOs, like Vetcelerator, use a hybrid model that includes predictable discounts on supplies along with discounts on in-house, such as website, recruiting, social media marketing support services, making the pricing structure even more valuable in the long run.
2) How Does Your Group Purchasing Organization Select Vendors?
Not every GPO offers discounts across the same product lines nor has access to discounts across the same vendors. Be sure to ask:
- What vendors are a part of your purchasing group?
- How do I access discounts and rebates from these vendors?
- What selection criteria do you use when curating your procurement platform?
- How do you incorporate risk management into your selection process?
Most veterinary GPOs have product discounts or rebates across all categories of the Profit and Loss statement, so no matter the GPO, you can be sure they likely have a marketing partner, an educational partner, etc. What you want to understand is how the GPO selects those partners and how they determine that these vendors are truly best in class for the GPO’s member veterinary clinics.
3) Is the Vet GPO Transparent in Their Pricing and Reporting?
Transparency helps your practice track real value over time. Key questions include:
- Do you offer regular reports that show what we’re saving and where?
- Are administrative fees, commissions, or vendor rebates disclosed? How?
- Does being a member of your GPO preclude me from being a member of other GPOs?
It’s important to understand the Return on Investment of your membership. Asking questions regarding reporting, fee structure, and your options for saving outside the membership will give you an idea of what you should use the GPO for and what you may need to supplement. You will want to choose a veterinary GPO that will be upfront about costs and how they operate, like Vetcelerator.
4) What is the Cost of Joining the Veterinary GPO?
Not all GPOs are free to join. Some charge annual fees or require a minimum purchase volume in order to get vet supply discounts. Oftentimes, this is not straightforward. Be sure to ask:
- What are the total annual costs: membership, onboarding, or vendor access fees?
- Are there penalties for leaving early?
- Where do I find a billing statement?
As mentioned above, the pricing model for a GPO may be a combination of payments from members and payments from vendor partners. Understanding how the GPO makes money is valuable for aligning your values with your selected GPO partner.
5) What Services Are Included in the Group Purchasing Organization?
The best veterinary GPOs go beyond supply savings. They act as operational partners. Ask:
- What other services are included in your GPO?
- Can you help us attract more clients through marketing or advertising?
- How do I interact with your group? Is there a dedicated support person, a chatbot, or an email service? What are expectations of communication?
The service model is a consideration. Some GPOs are light-touch, which may be appropriate for your needs, while others are very hands-on in your growth. Vetcelerator, for instance, pairs all of our members with a Clinic Success Manager to discuss their needs and goals. Determining where you want to be and where your GPO partner fits is an important consideration.
Choose the GPO That Best Suits Your Veterinary Clinic
Choosing a veterinary GPO isn’t just about shaving costs on gauze or syringes. It’s about finding a true partner in your practice’s operational strategy. By asking the right questions, you can uncover which GPO aligns best with your values, your team, and your growth goals.
At Vetcelerator, we try to think about the problem differently. If you want to compete with corporate groups on pricing, join a GPO. But if you want to compete with them on everything, join Vetcelerator.
Contact us to find out more about how we can help your business grow.
