In today's economy of almost zero inflation, price increases are usually a poor method of increasing gross profit margins. The only other alternative is to cut costs.

Buying groups put their members on a level playing field with their larger competitors so that they, too can achieve attractive gross profit margins, while keeping their prices competitive. Marketing groups are designed to serve a similar function by allowing members to share a common marketing program, thereby reducing expenses.

When competitors in the same industry come together in a buying or marketing group, there are always potential antitrust problems to consider and avoid.

The author, attorney Harry B. Ray has guided a wide variety of these groups through the obstacles of antitrust law and several other areas of the law to ensure that they operate legally. He has developed a national practice in this area over the past 13 years.