Although Associated Buyers is a privately owned entity, the company's origins are deeply rooted in cooperative business priciples and ethics that compliments our long-standing tradition of serving Buying Club accounts throughout New England. Buying Clubs are comprised of individuals and families ordering collectively to achieve a bulk purchasing advantage. Aside from the time and devotion involved in the buying club process, there are many benefits to this arrangement not the least of which is access to high quality, wholesome foods at affordable prices. Beyond the monetary advantage, there is often a sense of community that belonging to an organization of like-minded people generates. Many buying clubs are comprised of neighbors, mother's groups, co-workers, young couples, church members, or family members.
GUIDELINES FOR
STARTING A BUYING CLUB
OR
SO YOU WANT TO START
A BUYING CLUB
(SOME THINGS TO
CONSIDER)
A buying club (coop)
is usually made up of a small group of families or households in search of a
better or more economical way of purchasing food or other items (garden seeds,
services, equipment, etc.). They usually have a common need or philosophy
when it comes to spending their time or money on these needs.
There are certain
things to be considered before starting a buying club. Such as:
Decision Making
Membership
Jobs & Member
Responsibilities
Ordering Procedures
Member Handbooks or
By-Laws
Decision Making
Having a clear understanding concerning how decisions
are to be made is very important to keep the buying club running smoothly and
allows members to feel confident about the process. How will decisions be
made?
Who will participate
in the major decision-making?
Who will direct the
group during the decision-making process?
When or will the
group be able to re-visit their decisions or renew their agreements?
What happens if some
members strongly feel the wrong decision has been made?
Membership
Having clear guidelines concerning the responsibilities
of membership and the ability to communicate these to all members is essential
for a healthy functioning buying club.
Who is eligible for
membership?
What are their
responsibilities?
Are non-working
members allowed? And if so, what is the impact on other members?
Should there be
membership fees or dues?
Should a limit be set
on membership?
What if a member
asked for a leave of absence?
Are there any reasons
that may cause a member to be asked to leave?
Who should have the
responsibility or authority to ask a member to leave?
Jobs
This is probably the most important part of a buying
club. The reason your group can shop at wholesale prices is because the
work the group does equals that which retail store owner's and their employees
do, such as, collating orders, distributing product, bookkeeping, maintenance,
paying rent etc. There should be strict policies concerning job
responsibilities. Without working members, the buying club won't work.
An additional thing to consider when creating jobs for members is that some
jobs require more time and energy than others. Members carrying an extra
share of the work should be acknowledged and/or compensated. These
particular jobs should be rotated on a regular basis, if possible.
Do all members have to contribute an equal
amount of time?
How are the jobs assigned?
Should members be cross-trained? (Remember
people take vacations and personal
emergencies do arise occasionally.)
Are the jobs periodically rotated?
How does the group ensure job requirements are
met?
The following is a list of possible jobs. This
is only a guideline. Depending on the size of the group some of the jobs
are not necessary or can be combined.
Coordinator/Coordinators
- primary responsibility is communication between members, contact person
for distributor and general problem solving.
Membership
Coordinator - keeps handbook up-to-date, orientation for new members,
checks in on new members for a few ordering cycles to see if there are
questions or problems.
Jobs Coordinator -
makes sure jobs are filled, keeps track of members' working hours, and
assigns new members jobs.
Collator - collates
members' orders into one master order, places order and makes sure split
cases are filled.
Bookkeeper - collects
payments, issues credits, and manages the group's checking account.
Treasurer - works
with the bookkeeper on group's finances.
Distribution
Coordinator - organizes and troubleshoots at distribution, checks in order
at delivery and calls in credits/missing items.
Distribution Team -
breaks down order and sorts through members' orders.
Newsletter/Publicity
- writes, publishes and mails or distributes group newsletter, maintains
group's mailing list and phone numbers and encourages public interest.
Ordering Procedures
This should include an explanation of the ordering,
delivery, distribution, pick-up and invoicing of the buying cycle. Rain
checks, surcharges, sales tax and bottle/can returns and deposits should all be
address. The following should be considered in the process:
Order sheets should
be designed and distributed with information on its use. You may sign up to get our monthly excel pricelist/order guide emailed to you.
Should each member
subscribe to the catalogs or share copies with other members?
An overview of the
catalog and how to use it should be explained to all members.
What is the order
schedule?
Should the members
consider having order meetings?
Can members include
in their order items for people who are not members?
How does the group
handle problems such as late orders, late payments and bounced checks?
Handbook or By-Laws (especially recommended for large groups)
The above items should be addressed by the group, and
then written down in the form of a handbook or by-laws. Creating the
handbook should be a process open to all members for input and final
approval. The handbook should also be re-visited on a regular basis, such
as every 6 months, annually, etc., to make sure your membership's needs and
goals are being met. This handbook is the backbone of every working
buying club. It is a valuable tool for new members and also helps keep
the buying club on track when any exceptional situations come up that can
disrupt even the most organized buying club.