How does HMI make money without an administrative fee?
We pass most of the discount we receive from suppliers on to our members, keeping a small portion to pay operating expenses. All buying groups must make a profit to stay in business and if they pass along the entire supplier discount, as some claim to do, their profit must come from somewhere else — usually an administrative fee. Buying groups that pass along the entire discount they receive from a supplier are perceived as offering better pricing, but when an administrative fee is added, the prices you actually pay are significantly higher than the discounts quoted. We don’t believe that’s in the best interest of our members.
