Mining CBUSA’s data: Ways to cut costs with group purchasing

Numbers don’t lie – they tell a story. That’s why we’re taking a closer look at figures from our friends at CBUSA. Recently acquired by Buildertrend, CBUSA is a group purchasing organization that has spent the last 17 years building the nation’s premier home building network made up of builders, suppliers and manufacturers across the country. Their elite Builder Members know joining this network is one of the smartest ways to cut costs for the best in the business. That’s because they have the combined purchasing power of a top 10 national builder.

Insights from these numbers can then fuel data-driven decisions that lead to your company’s long-term success.

This month we wanted to take a closer look at how much money there is to save and success to realize as a member of CBUSA. The market strength of CBUSA’s combined network is undeniable. Members are accessing the best material prices, saving time negotiating and growing their bottom line. There’s nothing but benefits here.

Having this competitive advantage is more important now than ever. With challenging industrywide hurdles like the skilled labor shortage and skyrocketing demand, teams are looking for ways to cut costs. CBUSA is the solution – and the data proves it.

Total network starts up 43% year over year

There’s not just a skilled labor shortage facing the construction sector – supplies are scarce, too. Production is still trying to catch up from supply chain disruptions due to COVID-19, and the sudden uptick in demand just compounded the issue. Building materials are harder and harder to come by, forcing many teams to drop contracts or extend project timelines.

It’s a nightmare – but one CBUSA members are avoiding. According to the company’s proprietary data, there was a total of 3,774 network starts for the second quarter of 2021. That’s up 43% from the same period in 2020.

Instead of being forced to press pause, CBUSA members can keep projects moving forward because materials were locked in beforehand. Supply shortages have met their match.

Material savings between 5-25% per contract

Material prices for construction have been on a roller coaster ride – and not the fun kind either. Costs are reaching sky highs, plummeting, only to ricochet up again. Earlier this year, the surge in lumber prices added nearly $36,000 to the price of an average new single-family home. Additionally, data from Buildertrend customers showed a 61.72% increase in price of lumber bids year over year.

But those aren’t the figures we want to focus on here. Why? Because this isn’t the reality for CBUSA builders. Once again, they are overcoming one of the industry’s steepest roadblocks through their membership.

Material savings due to price protection on key national contracts ranged from 5% to 25% per contract. How? CBUSA builders locked in material prices and protected builders with price increase caps, so all that volatility is simply avoided. When looking for ways to cut costs, you can’t find better savings than this.

Members that enroll in CBUSA’s Brand Partner Programs have price protection put in place to ultimately shield the builder when material increases take place. Throughout the craziness of the last few months, CBUSA has become one of the best ways to cut costs as the price of steel and wood skyrocketed. While the rest of the market is paying a premium, CBUSA members are protected.

$2.08 million in rebates

Yep, that’s $2.08 million – seven figures in savings. That’s the amount distributed back to builders nationwide throughout the second quarter of 2021. Those savings go directly to the builder instead of the supplier – which means CBUSA members remain more profitable.

Rebates are earned in two ways for those in the CBUSA network. There are more than 500 companies throughout the country across 30 markets and growing. Group buys with these local chapters is the first avenue for rebates. Members can buy commodities together with other area builders to lock in pricing, negotiate service terms and work with Preferred Local Vendors to earn additional rebates.

Rebates also come when leveraging CBUSA brand partnerships. Companies can enroll in exclusive brand-specific deals to achieve pricing and rebate advantages from some of the top names in the industry.

This proves it: Group purchasing is one of the top ways to cut costs for construction teams.

Apply to become a CBUSA member today

If you’re not yet a member of CBUSA but want in on these savings, inquire about membership today. It just takes a few minutes to apply.

The best prices for the best builders. That’s exactly what CBUSA is. Are you their next success story?

 

About The Author

Sean Robinson Sean Robinson is a senior content marketing specialist at Buildertrend