Leveraging a groups’ buying power is not a new phenomena.  The group buy is a win win solution, consumers pay less, and the company does more work.  The Chinese have been practicing this for centuries, it is called Tuangou ( http://en.wikipedia.org/wiki/Tuangou ) but, most of us have been too!  If you have ever negotiated any purchase, even at a garage sale, the most common theme is, “well, hmmm, that really is a nice lamp, but I don’t know if I need it or not…”.  Indecisiveness and lack of value are poor negotiating positions, especially if you have decided and see the value.  When you are seeking a solar installer, pick up the phone book and start calling, you lose most of the negotiation leverage, the installer knows you’re interested and their competition is only from other installers.

In the Chinese culture, the seller establishes a minimum quantity of goods to purchase in order to receive a discount.  There is also a level of implied safety when multiple consumers show a level of trust in the seller.  As it relates to home improvement, multiple members of the group are likely to have researched and done their homework on the company, compared their panel types, equipment, and reputation.

Surprisingly, online shopping in China has not taken off as it has in the United States, because the impersonal element of the internet.  Calling companies from the internet in any service category such as home improvement creates a difficult negotiation position for the consumer.   Whether on the web or over the phone, until an estimate is conducted there is little to negotiate, but even when there is a number to work from, the only bargaining chip homeowners have is that another company will do it for less.  By adding volume to the equation, and leveraging the buying power of the group, the responsibility falls on the specific company to make an ultra competitive bid for your business.

Warehouse clubs like Costco and Sam’s Club have long had a presence in American Culture, and with the internet, their have been dozens of sites like Groupon, BuyWithMe and MyCityDeal that bring people together to purchase electronics and others goods, but the idea is simple: saving  occur when bulk purchases occur, and with the connection and communication power of the Internet, people can join together and save!

50% of Americans’ site the high cost of solar installation as the number one reason they have not installed panels as an energy source!  SolarSipper groups of 3-8 people save between $1,500-$4,000 per person compared to the lowest individual direct quote!  Sign up today!

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