As an individual buyer, you probably spend a lot of time comparing costs, looking through flyers for special deals, and keeping track of bargains or manufacturer's "special purchase" offers. Everyone knows that buying in bulk gets you the best possible prices, but most often one individual or business finds it prohibitive to buy in bulk.
But by joining forces with other consumers and consolidating your buying power, buying in bulk becomes very affordable and manageable. More and more business people are looking into the power of "cooperative" buying - in short, forming a "co-op."
A cooperative is a business that's run like any other business, yet it has several unique aspects as well.
First of all, it belongs to the folks who use it - those who have joined together to provide themselves with whatever it is they need. In other words, the "raison d'Ítre" for a co-op is to serve the needs of its members.
Generally, the member-owners share equally in the control of their organization - they may meet regularly, elect directors or advisory boards from among themselves, and even hire people to manage the day-to-day affairs of the organization.
In any case, members are expected to invest in shares in the business in order to provide capital for the operation. This is usually accomplished through imposing an initial membership fee to join the organization, and then an annual fee thereafter to remain a member. In addition to the obvious benefit of having greater buying power, all net savings left after expenses are traditionally returned to members -- either in the form of greater discounts on purchases, or annual cash pay-outs in the form of dividends, or both.
Some of the steps involved in forming a co-op include:
Author Edward Badelle has joined the Internet's hottest co-operative shopping club to guarantee YOU savings at [http://clubshop.com/members/EB93949.html]
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Article Submitted On: December 28, 2000
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