Private Equity Giants Save Money Buying in Bulk – NYTimes.com

Private Equity Giants Save Money Buying in Bulk – NYTimes.com.

Blackstone-Nader Nazemi

James A. Quella, left, senior managing director of the Blackstone Group, and Greg S. Beutler, executive director.

This is a very interesting development. It is not ground breaking but it will save lost of money for these Private Equity Groups and the companies they run. Blackstone Group is doing it right.

A single company purchased more than 50,000 Hewlett-Packard computers last year, buying in bulk to shave millions of dollars off its costs.

But it was not General ElectricProcter & Gamble or another large, multinational conglomerate with the muscle to dictate prices to suppliers. Rather, the big buyer was the Blackstone Group, a private equity firm.
Private equity firms like Blackstone are emerging as a powerful new force in the marketplace. The big investors, which collectively oversee thousands of companies, are using their size and scope to pressure suppliers, set their own prices and exert their influence in a range of industries, including health care, construction and consumer goods.
Last year, Blackstone was part of a group of companies that collectively bought 16 million reams of copy paper, 35 million FedEx shipments and 900,000 days’ worth of rental cars from National and Avis.
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One thought on “Private Equity Giants Save Money Buying in Bulk – NYTimes.com

  1. Pingback: Blackstone Profit Fell 74% in Second Quarter – NYTimes.com | Nader Nazemi

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