Local Buy Myth Busters

Myth

Suppliers have to pay 20% rebate to Local Buy.

Fact

The average rebate fee a supplier pays through Local Buy is 1.5%
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Myth

Buyers and suppliers can't negotiate their own quotes.

Fact

Local Buy do the initial negotiations with suppliers, then buyers can further negotiate based on the works needed.

Myth

Suppliers charge the rebate cost onto the buyer invoice.

Fact

It is a condition of the contract suppliers sign with Local Buy that they cannot on-charge the rebate to the purchaser.

Myth

Buyers save money (i.e. 1.5% of cost) by not using Local Buy.

Fact

Engaging a Local Buy supplier, costs have already been negotiated and allow further negotiation, saving our buyers thousands of dollars.
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Myth

Local Buy does not have the suppliers we need on their Arrangements.

Fact

Local Buy put lots of effort into getting diverse businesses on our Arrangements. We want our buyers to have a great selection of Local Supplier's they can engage easily, but it takes time.

Myth

Local Buy does not support local businesses.

Fact

We do a lot to support local businesses, including fee free verification for all small businesses, charities, indigenous businesses, NFP's, and social enterprises.

Myth

Local Buy is not a competitive market.

Fact

The suppliers on our Arrangements have already done a lot of work and negotiations just for the opportunity to be easily engaged by our buyers. They know that most of the time they will need to further negotiate with our buyrs, making them exceptionally competitive.

Myth

Rates & discounts on Local Buy Arrangements are fixed.

Fact

As a buyer, you can further negotiate on all work you engage through our Arrangements. We have already done the inital negotiations, and allow you to further negotiate to make sure you get the best price through Loal Buy.

Myth

Local Buy Arrangements are the same as VP Marketplace.

Fact

The suppliers on VP marketplace have not undergone the Local Buy compliance checks and are not on an LGA Arrangement. All Local Buy Arrangements are LGA Arrangements with legislative exemption.

Myth

It is too hard to tender for a Local Buy Arrangement.

Fact

As Local Buy suppliers need to meet legislative compliance regulations, our tenders are quite thorough. This is so our buyers can have confidence when using a Local Buy supplier.

Myth

Local Buy does not have the suppliers we need on their Arrangements.

Fact

Local Buy put lots of effort into getting diverse businesses on our Arrangements. We want our buyers to have a great selection of Local Supplier's they can engage easily, but it takes time.

Myth

Local Buy does not support local businesses.

Fact

We do a lot to support local businesses, including fee free verification for all small businesses, charities, indigenous businesses, NFP's, and social enterprises.