When you join HPSI, you can count on Price Protection. We work with manufacturers to provide Price Protection on specified products for an extended period of time, and that can be critical to your bottom line. For example, some items are discounted at the time of order, while other contracts are price-protected for a period of months (or annually).
When it comes to Price Protection, our reputation is on the line. We carefully review the products that will be a part of the Price Protection program. In the food area, we evaluate products for their nutritional value, quality, taste, appearance, acceptability in certain markets, the appropriateness of the products for many diets, and the cost of the item. In fact, we have Registered Dietitians on staff who collectively have over 50 years of menu planning experience, so no dietary product detail is ever overlooked.
To provide even more savings, HPSI offers Committed Pricing which is lower than HPSI’s regular contract price structure. Committed Pricing is a guaranteed price or margin for a period of time on certain products, and is available to our members who commit to use the products during that designated period of time. The more you purchase, the more you save. In most cases, our members know what the cost savings will be before a decision is made to go with the committed program. It provides our members with a significant price reduction in exchange for commitment to purchase a certain percentage of your products from a particular vendor.
NATIONAL CONTRACT PRICING 4 ALL
Even if you’re a smaller operation, you still enjoy National Contract Pricing. By combining the purchasing power of all the HPSI members collectively, we’re able to use that total purchasing volume to negotiate national pricing with our distributors and manufacturers. With distributors, we’re able to negotiate guaranteed margin mark-ups for the products used by our members. With manufacturers, we’re able to negotiate guaranteed pricing, off-invoice allowances and quarterly allowances. Smaller operations would not be able to negotiate all these contracts.