May we use university funds to buy a discount club membership?
The university strongly discourages club memberships because:
· It creates an incentive for a unit to use one vendor instead of shopping around for a better price.
· The club price usually isn’t taken into consideration at the time of the actual purchase and may not provide the best deal.
· It doesn’t allow the university to use our combined buying power to get a better pricing like using eStores does.
· Many clubs have restrictions or terms and conditions that prevent us from setting up a business account.
In order to proceed with a club membership:
- Confirm with the vendor OSU is eligible for a club membership and that they can provide the State Sales Tax Exemption required for university purchases.
- Provide proof that the amount you would spend at the club plus the membership fee would be less than the cost of buying from eStores or non-club stores.
- Provide a clear business purpose and summary of the type of items you would be buying at the club.
- Provide the contract provided by the vendor for review through OSU purchasing.
Resources: Training Procurement