All alone? Get a group discount

Health insurance: One reason 47 million Americans go uninsured is because independent contractors can't get in on employer group rates.

But individuals can bond through groups. Ask the local Chamber of Commerce about ones in your industry. The Freelancers Union, for example, which covers several industries, is expanding health coverage nationwide and has already secured benefits for New Yorkers at one-third the cost of individual plans.

In the Midwest, cooperatives have pooled farmers and other workers into groups, making coverage affordable. More states are now eyeing that model.

"We can do more together than we can do independently," says Bill Oemichen of the Cooperative Network, a trade association.

A doctor's appointment: The amount billed to insurance is the same as a private visit. But patients can see the doctor -- along with a social worker and nurses -- in a group of six to 10 and get 90 minutes together instead of just 15 alone.

Grouped by condition, patients hear more answers, garner ideas from other patients and find camaraderie that promotes follow-up care. Privacy is given when needed.

"You realize you're not so different," says Christine Beecher, 68, a patient through Harvard Vanguard in Massachusetts. "Each time I came out of it with more than I had gone in to initially inquire about."

Food in all its glory: In its original form, community-supported agriculture (CSA) meant individuals bought shares of a farm and organized the work. Today, members own only a share of the produce, but the upfront group payment has still allowed local farms to thrive. People have also joined groups to pool backyard garden yields and buy cattle (cow-pooling), dairy products and a host of other food resources.

Carla Borelli, who blogs at LocalForage, organized a group buy of almonds, walnuts and pecans that let her distribute farm-direct, unique variations at affordable prices. Her fellow local foodies do the same for cod-liver oil, olive oil (saving $4 per bottle) and grass-fed ghee (a type of clarified butter) from Amish farmers.

To find a CSA or other group food buying opportunity near you, search at LocalHarvest.

Everything else -- online sharing sites

What if shoppers had one place to go to create a group buy for any item?

Several Web sites offered this a decade ago and bombed. But a new crop of sites, aware that people are now far more comfortable shopping online, is giving it another go.

Pikaba.com, where users select a product, collect buyers and get an offer from a supplier, says it has obtained discounts of as much as 35% through a retail clearinghouse. But it's mum on typical discounts, as merchants are reluctant to disclose if they've undercut retail prices.

In China, where shoppers can't guarantee the quality of online products, in-person team-buying events -- called tuangou -- have become popular (see "China's new shopping craze: 'Team buying'").

Here, though, only time will tell how group-buy Web sites fare this time around.

How to organize a group buy

Organizing a group buy isn't easy, but nothing comes without a cost. Savings usually require some time, effort or risk. So here are a few tips from David Croson, a business professor at Southern Methodist University's Cox School of Business, who has studied group buying:

• Identify something available at several locations. "The key thing to remember about that bargaining power is that the better price comes from your threat to walk away and buy it from someone else," Croson says.

• Round up buyers first.

• Research prices to suggest.

• Identify the salesperson who has the authority to negotiate. "I call this being conspicuously organized," says Croson. Look like a serious sales opportunity. Wave a list of names. Say: "We can go to any of a dozen dealers and one of them is going to say yes. It might as well be you."

• Work with buyers you trust. It's your job, not the merchant's, to collect payment. Branch out from friends or, if online, member forums.

• Don't pay first with your money. Try PayPal, if need be, to ensure commitments, but be aware that those too can be rescinded, potentially leaving you with a truckload of almonds.

Published March 10, 2009

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