n3 Trade Card Review - is it right for your business?
n3 offers supplier discounts, but is it cost-effective for your business? Our guide outlines what n3 is, the benefits of becoming an n3 member, and how it works. We also look at the fees involved to become a member and who the suppliers are.
Updated 16 February 2025
Summary
To understand if the n3 is right for your business, this guide outlines what n3 is, the benefits of becoming an n3 member, and how n3 works. We also look at the fees involved to become a member of n3. We specifically cover:
Summary
- n3 is, in its simplest form, a program which gives businesses discounts from popular suppliers all over New Zealand.
- Membership starts at around $300 a year, allowing members to get 5% to 30% discounts at retailers such as Bunnings, BP, Mercury Energy and Torperdo7, and around fifty other retailers.
- n3 claims to have around 15,000 New Zealand businesses signed up for membership.
To understand if the n3 is right for your business, this guide outlines what n3 is, the benefits of becoming an n3 member, and how n3 works. We also look at the fees involved to become a member of n3. We specifically cover:
Know this first - who is n3?
- n3 started as a GSB (Government Stores Board) over 100 years ago. In a nutshell, n3 are procurement specialists that aim to help businesses save money on their purchases by negotiating exclusive pricing and terms of supply with New Zealand's leading suppliers.
- By doing so, the aim is to help increase both the growth in supplier sales and member savings.
- n3 has a membership base of more than 15,000 New Zealand businesses, organisations, schools and early childhood education centres who use the card to save money on everyday operating costs.
What suppliers work with n3, and what are the discounts?
n3 makes this clear by listing their suppliers and a "typical discount" estimate.
MoneyHub Founder Christopher Walsh shares his view on the n3 cardRunning a business is a cash drain, so an offer to save 10% to 30% on expenses you're already running up may seem attractive. There's a lot to like about n3, especially the flexibility of charging on account and/or paying upfront via card.
My view is simple - unless your business uses at least two of the suppliers and/or spends over $5,000 a year, the cost/benefit may be difficult to justify. If, however, you have existing relationships with some of n3's suppliers, the savings can be significant and convenient. |
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How Much is the n3 Membership, and How Does it Work?
The n3 annual membership fee is variable and dependent on business structure and size. Getting started with n3 costs around $300 per annum with an average payback time (via savings) of just one month per n3's website.
Key benefits as a member of n3:
Key benefits as a member of n3:
- Favourable terms - You can purchase On Account from as many of n3's suppliers as you like on more favourable terms. Generally, the more you spend via n3, the more you save.
- Discounts - If you currently purchase from one of n3's suppliers, they can connect your existing account to the n3 price file, so you get access to their exclusive n3 discounts.
- Full decision making - You have complete autonomy to keep relationships with suppliers, purchasing as you usually would at n3's lower prices.
- Suppliers of n3 are trustworthy - n3 makes it clear that to make the "n3 network", suppliers must go through a rigorous tender, negotiation and review process with n3's procurement experts.
- Online functionality and reporting - Members gain full access to n3's self-service website, which shows monthly n3 spending and savings reports. Other functionality includes the ability to open and link accounts, send queries and more.
- Easy setup and ongoing management - When you join, a consultation from one of n3's team (i.e. an account manager) will help you make the most of your membership and identify areas n3 can help you reduce your business costs.
What Businesses Suit n3, and How Much Can You Save?
As a background, n3's suppliers serve all industries, including education, health, government & community, manufacturing, construction, business services, utility, wholesales & retail trade, arts & recreation, transport & distribution, accommodation & food service and the primary industries.
They work with suppliers in categories to help n3 cardholders cut costs on the following expenses:
Important: Determining how much you can save depends largely on suppliers and the category of your business purchases.
They work with suppliers in categories to help n3 cardholders cut costs on the following expenses:
- Trade & Maintenance - gas, building, electrical, paint, plumbing, engineering etc.
- Business Essentials & Office - stationery, couriers, water coolers, printing, furniture and electricity etc.
- Fuel & Vehicles - fuel (via multiple Fuel Card options), batteries, tyres, servicing and rental etc.
- Technology & Communication -GPS tracking, broadband, landline and mobile etc.
- Health & Safety - PPE, clothing, high vis. & training as well as washroom and cleaning chemicals etc.
- Grocery & Hospitality - Milk, tea & coffee, bread, dry goods, catering, mattresses, linen and hospitality etc.
Important: Determining how much you can save depends largely on suppliers and the category of your business purchases.
Understanding n3's On Account vs Trade Card (and App)
It's likely your business, depending on the size, may see value in both an On Account setup and selected Trade Cards for key staff. We explain the difference between the two options below:
On Account
- As an n3 member, you're able to purchase on account with any of their suppliers. That means setting direct trade accounts with suppliers, paying via monthly invoicing with the n3 discount applied. In addition, the n3 team will email you monthly reports informing you exactly how much you spent and saved every month.
- The benefit to having an account with any n3 supplier is that you'll be able to purchase goods and pay for them at a later date when they send you an invoice, helping your business with cash flow while getting a discount on the spend.
- If your business already has contracts set up with one of n3's suppliers, linking your account allows you to switch from your existing account over to n3 pricing. In this process, there will be little to no paperwork involved. The supplier will confirm that you will save money before moving you onto n3 pricing.
More details: On Account
Trade Card and App
This is the quicker and easier way to access instant business discounts in-store and/or online with n3's suppliers without opening a direct trade account with the supplier. However, you need to have an existing n3 relationship to be eligible to apply for a Trade Card. Features include:
More details: Trade Card
- Personalised cards for each staff member.
- Individual members can access discounts without the need to open an account (i.e. directly from your smartphone via the Trade Card App or physical Trade Card).
- Purchases are paid at the time of purchase (there is no credit link with the supplier).
- Members can see exclusive offers (for Trade Card App users only)
More details: Trade Card
Frequently Asked Questions
How are savings calculated?
The majority of n3 suppliers provide detailed monthly reports which show the spending and savings for each member. Depending on the supplier's operating model, the savings are reported against the supplier's baseline price vs a list price, trade price, or distributor price.
How do I open an account with an n3 supplier?
Your n3 account manager will help you facilitate the account opening process between you and n3 suppliers. Application forms are available online or in print, depending on the supplier. If you are logged into the website, you can also navigate to a supplier's dedicated page, download their application form, and upload it.
Which is better - an On-Account or a Trade Card?
This ultimately comes down to how your business works and operates, as well as your preferences. If you prefer to pay cash upfront and manage receipts, then the Trade Card option will likely be the best option. However, an On-Account card will give you the biggest range of suppliers and best credit terms.
Do I receive an invoice from the supplier for Trade Card purchases like I do with On Account?
No, you don't. Purchases using the Trade Card or App will be paid at the time of purchase.
Can I buy fuel with the Trade Card?
Yes, but it's important to know that the n3 Trade Card is not a fuel card. However, n3 provides three fuel card options for n3 members to BP, Mobil, Caltex and Z whereby the idea is you link your card to your existing fuel card and save up to 12 cents per litre.
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