WHY WOULD SUPPLIERS THAT A BUILDER ALREADY DOES BUSINESS WITH GIVE BETTER PRICING JUST BECAUSE IT BECOMES A UMMA MEMBER?
There are several reasons. Fundamentally, because the suppliers have an agreement with UMMA that provides that all Members will share in the group programs. More specifically, suppliers are becoming increasingly aware that the independent builder is, as previously stated, an endangered species and their survival is vital to the health of the industry. Suppliers have begun to recognize that further industry consolidation works to their ultimate disadvantage. In fact, if the business were reduced to a small handful of giant customers, the suppliers would not only be squeezed to the point of unprofitability, but would be completely vulnerable to a loss of such a controlling customer. A perfect example of this was the withdrawal from the marine industry by the carpet giant, Carriage, a large percentage of whose business was controlled by OMC, Brunswick and Tracker. By pooling our Members’ collective requirements, UMMA represents sufficient collective purchasing volume that no supplier want
