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patients, earning a total of $ 200/patient × 50 patients = $ 10,000. Under a discount plan, the dentist may charge only $ 125 per treatment, but can provide the treatment to 80 patients, earning a total of $ 125/patient × 80 patients = $ 10,000. Note that total earnings under the plan ($ 10,000) are the same as the earnings without the plan ($ 10,000). In other words, under the discount plan, the dentist is providing a greater number of services without any increase in earnings to go along with it.
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services in bulk and at quite a discounted price. This is possible due to the sheer volume of buyers, which drives down prices and allows each group or individual to benefit from economies of scale. Collective buying power plays a good role in reducing costs, as it ensures that purchasing decisions are made with consideration for both quality and cost-saving measures.
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Internet companies have been leveraging this concept, bringing people together online. The company will arrange a coupon offering, that will only go into effect if more than a before agreed upon number are sold. Collective buying power is the ability of multiple individuals or groups to buy goods or
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implying the income available for discretionary spending among segments in the population. In short, it is a measure of the ability and willingness to buy goods or services. The second is an industrial definition, which refers to the relative influence an individual or a job function (engineering,
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for the discount plan members (dental patients) and for dental care providers (dentists, hygienists, dental specialists, etc.). Patients benefit because they are receiving dental services at discounted rates. The benefit to dentists is that, even though they must offer their services at discounted
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There may also be a downside from the perspective of patients in a high-volume practice scenario like this: A dentist who needs to treat 80 patients instead of only 50, while being compensated the same total amount, will have less time and resources available to devote to each individual patient.
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However, such an arrangement could also result in downsides for both dental service providers and patients. Dentists may end up doing more work while earning the same amount of money. For example, without a discount plan, a dentist may charge $ 200 per treatment and provide the treatment to 50
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This has the potential to become a situation of "quantity over quality", and patients might receive lower-quality care overall. In the U.S., the critical term "Medicaid mill" is sometimes used informally to describe dental or medical practices that compensate for low
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function in a similar way by offering products in bulk to consumers who pay membership fees. In the same sense, collective buying power is a cooperative approach to leveraging group size to benefit the consumer by offering
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rates under these plans, they are also likely to increase their patient volume. Depending on the size of the discount offered and the number of new patients, this may be financially beneficial for the dental providers.
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purchasing, production) has in a purchasing decision. Power may be based on reward abilities (granting monetary or perceptual benefits), coercion, legitimacy, personality, or expertise.
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It should also not be conflated with "buying power" or "consumer buying power", which has two definitions. The first, a consumer behavior definition, found in
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or businesses to leverage the group size in exchange for discounts.
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Collective buying: the emergence of a new co-operative movement
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reimbursement rates by seeing a high volume of patients.
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Many different companies have used this concept to build
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Collective buying power should not be confused with "
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