Understanding Contract Pricing

Unlocking collective buying power

When new visitors come to the LNPG website many do not understand why we are the fastest growing landlord group in the UK.  They assume that our claim that we really can save you large sums of money is invented, exaggerated or only represents savings when landlords buy in bulk. All these assumptions are wrong.

What LNPG has achieved is unique – we are the first landlord group or association that has enabled our members to buy at contract prices.

Last year our members spent in excess of £10.1M with our partners. They did this because the price, choice and service was better than any other source they could find on their own.

They also found that instead of buying cheap products from DIY stores they could buy top quality, brand name products that offered better durability, higher reliability and less maintenance at similar price.

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So what is contract pricing?

To explain that, let’s first look at the two price models you are probably familiar with:

Retail image Retail Price: The most expensive way of buying.

Retail prices are set by retailers.

When you walk into a retail outlet (for example a DIY store) you pay the top price. Even if you are offered discounts, this remains by far the most expensive way to buy anything.

To make things worse, many products offered by retailers are of lower quality than trade products. In fact some products are exclusive versions, only available to that retailer, which use lower quality parts to reduce cost and allow the retailer to offer what sounds like such a low price. These items may be harder to source parts for should they fail, and may not be fit for the demands of the rental market.

trade imageTrade Price: an improvement on Retail.

Trade prices are set by merchants to attract trades people in to their store.

Trades people may also gain some discounts against trade prices if they buy in bulk. Trade prices are an improvement on retail prices and can seem quite attractive. We all think that we are excellent negotiators but in reality, even when large discounts are offered against trade prices, they will always be much higher than a contract price on a like-for-like basis.

Contract imageContract Price: buy like a council.

This method of buying is not new. Councils and housing associations, as well as major building contractors, have been negotiating directly with manufacturers and buying at contract prices, for decades.

Now LNPG has unlocked contract pricing for landlords.

As a member of LNPG, when you buy a product from our partners (such as Plumb Center, Magnet, Johnstone’s, etc) the price you pay is a result of the negotiation between LNPG and the manufacturer.

We can do this because, as a group, we are like a large contractor or council – representing more than 20,000 properties.

Last year LNPG members spent more than £7 Million with our partners. They purchased this way for one simple reason: the contract prices we offered them were better than any alternative they could negotiate themselves.

As a member of LNPG, you can buy products against these exclusive contracts for all your rental properties, at the special contract price. And the good news is, you do not need to buy in bulk.

To repeat, it is the total housing stock that we represent which has allowed us to achieve this level of negotiation for you.

It does not matter if you own one rental property or hundreds. All members of the group benefit equally – everyone in the group pays the same price.

Each year we re-negotiate the prices with the manufacturers, and the price then remains fixed for the duration of the contract – usually this is for 12 months.

LNPG provides a buying solution for landlords.

By joining landlords together and leveraging our collective property ownership we have put LNPG landlords in a unique position (and make no mistake this has been no mean feat). LNPG enables members to purchase products at substantially lower cost than even trade prices.

If you join another landlord group that claims they can save you money, they probably can – but this will only be against a Trade price. Trade prices will never beat contract pricing on a like-for-like high quality or branded product. No other landlord group in the UK offers contract pricing to its members.

Buying products at LNPG contract prices is easy.

With many products you will purchase through our merchant partner, like Plumb Center, and in other cases you will purchase directly (for example Magnet Trade Kitchens,  Johnstone’s paint, Alert Electrical). This is the same as you would do if you were a trade buyer – but instead of paying the trade price you pay the special LNPG contract price.

In all cases we provide buying guides on the partner pages of the LNPG website. We also provide personal assistance via our UK members’ support team who are only a telephone call away on 01455 23 44 99

Guarantees and support

The products on the LNPG buying solutions contract come with the same (or better) guarantees and support provided on retail products.

In some cases we have negotiated extra guarantees – for example a five year guarantee for products at our contract price when others may have only managed a 1 or 2 year guarantee.






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26 + ......................  £399 plus VAT