Further Proof Consortia Buying Can Work (Even for the Small Guys)

I apologize for my recent obsession with leveraged buying of late, but it seems that a day does not go by where I don't read an article or talk to someone about a success story in the area. But it's not just the big guys who can benefit. According to a recent article in the Wall Street Journal, small custom home builders are saving material sums on their building expenses. This is all the more impressive given how material costs have risen dramatically in home building for everything from lumber to copper plumbing to insulation in recent years. According to the story, "Small custom builders are joining together in co-op buying groups to get better pricing on materials. One such group, Custom Builders, USA, based in Washington, D.C., has expanded to 15 markets and 425 members this year from nine markets and 250 members last year ... the group's mass buying power can shave between 4% and 8% off the hard costs of building a home." In the case of this example, consortia members claim that they can now be price competitive with the big dogs of custom home building.

- Jason Busch

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