The Problem We're Solving

Billions in
negotiated savings
vanish every year.

Procurement teams at multifamily operators work hard to lock in discounted pricing with vendors. But when maintenance staff need a replacement faucet or appliance, they pull out a paper document, can't find what they need, and buy from Home Depot instead. The savings never happen.

$10B
Annual maintenance materials spend across U.S. professionally managed apartments
$1–1.5B
Estimated annual leakage from off-contract, untracked purchasing
10–20%
Of targeted procurement savings lost to rogue buying, per Hackett Group research
$20
In property value created for every $1 of recurring OpEx saved (at a 5% cap rate)
The Broken Workflow

Three roles.
Zero connection.

Every dollar of procurement leakage traces back to the same structural gap: the people who negotiate pricing have no way to reach the people who actually buy things.

🏢
Procurement Team
Negotiates pricing with vendors
Spends weeks sourcing contracts for faucets, flooring, appliances, and HVAC equipment. Locks in bulk pricing. Believes the savings will flow to the bottom line.
The gap: No system to publish those prices to the field. Savings exist on a spreadsheet, not in anyone's hands.
🔧
Maintenance Staff
Pulls out a paper plan set
Receives a work order. Needs to identify the correct part — the right faucet model, the right flooring SKU. Consults a binder of photocopied documents that may be years out of date.
The gap: Can't find the spec. Doesn't know there's a negotiated price. Drives to Home Depot. Pays retail.
📊
Owners & Investors
See the maintenance line item
Review monthly financials. Repairs & maintenance is elevated. No visibility into what was bought, from where, or whether negotiated pricing was used.
The gap: Procurement claims savings. Maintenance spends retail. The P&L shows the damage, but nobody knows why.
The Dollar Impact

Real numbers.
Real leakage.

The NAA's annual benchmarking survey covers over 1 million units across 4,600+ properties. The data makes the scale of the problem impossible to ignore.

Portfolio Size
Annual Materials Spend
Leakage (12%)
Small operator (200 units)
$100K
$12K
Regional operator (1,000 units)
$500K
$60K
Mid-size REIT (10,000 units)
$5M
$600K
Large portfolio (50,000 units)
$25M
$3M
U.S. Market (20M units)
$10B
$1.2B+

Based on NAA benchmarking data: ~$950/unit/year repairs & maintenance; ~50% materials cost; 10–20% savings leakage (Hackett Group).

$950
Median repairs & maintenance cost per unit per year, per NAA's 2022 benchmarking report across 1M+ units. Up 13.7% year-over-year, driven by appliances, painting, and general repairs.
~50%
Approximate share of that spend attributable to materials and supplies — the portion directly affected by whether staff use negotiated pricing or buy retail.
$0
Amount most operators currently spend on software to track whether their negotiated pricing is actually being used at the property level. This is an unmanaged problem.
MRO spend is the largest controllable expense in property management — yet it remains almost entirely uncontrolled.
Fraxion — Property Management Procurement Software
Root Cause Analysis

Three structural failures
driving the same outcome.

01
No digital asset catalog at the property level
Building equipment — faucets, flooring, appliances, HVAC — is documented on paper plan sets that live in binders. These are routinely out of date, hard to search, and physically absent when a maintenance tech needs them on a job.
Information Gap
02
Negotiated pricing exists in a vacuum
Procurement teams negotiate with vendors and track deals in spreadsheets or manually managed lists. There is no mechanism to attach those prices to specific SKUs and make them visible and actionable to the staff who actually place orders.
Coordination Gap
03
No visibility into savings realization
Owners and operators have no way to see whether purchases are being made on-contract or off-contract. The maintenance P&L line absorbs both — leaving the true cost of procurement dysfunction invisible until it compounds across thousands of units.
Visibility Gap
The NOI Multiplier

Every dollar saved is worth twenty.

Multifamily assets are valued as a multiple of Net Operating Income. Because maintenance materials are a recurring operating expense, reducing them doesn't just save cash — it directly inflates property value.

At a standard 5% cap rate, every $1 in annual OpEx savings creates $20 in asset value. That means the $60K leakage problem for a 1,000-unit operator isn't a $60K problem — it's a $1.2M problem.

$60K
Annual procurement leakage for a 1,000-unit portfolio
÷ 5%
Cap rate (standard multifamily valuation)
$1.2M
Lost property value — from one fixable workflow problem

1,000-Unit Portfolio — Annual View

Total annual revenue ~$18M
$18M
Materials & supplies spend $500K
$500K
Off-contract leakage (est. 12%) $60K
$60K lost
Implied asset value destroyed $1.2M
$1.2M
At 5% cap rate: $60K recurring savings × 20 = $1.2M property value
20M
Professionally managed multifamily units in the U.S. — all with maintenance teams operating from paper plan sets today
$1.2B+
Estimated annual procurement leakage from off-contract buying across the U.S. multifamily market
$0
Spent today on purpose-built software connecting procurement catalogs to maintenance workflows at the property level