h a l f b a k e r yBunned. James Bunned.
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A certain number of households (a few hundreds) get together and purchase monthly groceries directly from wholesalers at concessional rates at discounts of 20-50 %. Groceries will be delivered monthly at doorsteps of households, every month or 15 days.
This will save uncessary trips to grocery stores,
will save time, effort, car wear; It will be huge savings on monthly grocery budget.
Also to get still better rates, an annual or 24 month agrement can be made with wholesaler. My guess is that upto 70 % discount can be obtained this way.
Only exceptional/irregular items will be purchased in retail supermarkets.
Many households buy goods from single grocery store, months after months for 2-3 decades. If one could buy 30 years of groceries in one go, they can easily qualify for attractive wholesale rates individually. However deliveries will be made every month.
[edit]
Here is an example of cost advantage of wholesale operations:
Cigarette lighter adaptor that you bought for $35.00, wholesales for $2.15. Batteries that you pay $45.00 for, wholesale around $5.50.
Online_20Co-operative_20Store
Redundant - [marked-for-deletion] [hippo, Feb 21 2011]
[link]
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Is this different from a coop (cooperative)? |
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[mp], yes something similar, but without cooperative stores. There are no stores in this case. Purchase is made with wholesaler and delivery of monthly groceries are at the doorstep of participating household by delivery van. |
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[zen_tom] I think coop store model is very similar to existing retail model, hence discounts are generally not very significant. |
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//certainly back in the 50's //
As late as the early '70s, the local grocer was delivering in our area.
Regarding the co-op, you have to specifically sign up to be a member (it will cost you one, whole English pound), and then you have to shop there as well in order to 'earn' your points and get a share of the profits. |
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In this case, I think not having a store, is a major plus. Goods will be braught directly from wholesaler to consumers. This is also helpful for old people living alone. |
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Costco and Sam's Club are not co-ops. Co-ops are co-ops. |
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I've already suggested the advance purchase thing here, but this strikes me as akin to a Suma buying circle or something, i.e. baked to a crisp. |
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Do you honestly beleive you could get 70% off by simply cutting out the supermarket? Wow. Either a) supermarkets apply a 133% markup, or you're making this up as you go along. |
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I want to beleive that the supermarket's profit margin is less than that. |
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We tried something similar a couple of years back. We
bought all the year's game in January. We got a fantastic
discount, but we realized our mistake by March. There's not
a lot you can do with two hundred brace of pheasant by that
point. |
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//In this case, I think not having a store, is a major plus// |
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By "no store," do you mean that people don't come in and
collect their goods, but rather have them delivered? Or do
you mean the organization doesn't own premises where
goods bought at wholesale are temporarily stored before
being distributed to members? Or do you mean members
pay
only the wholesale cost, rather than paying cost-plus, and
getting the "plus" back at the end of the year? Or
something
else? |
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20-50% is totally unrealistic even when incorporating economies of scale. Typical grocery stores (in the US) operate at 6% net margins. Source: a quick Google search. |
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[mp] it is first 2 out of 3. |
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I think if if the scale of operation is huge, then putchases can be made, much closer to the source along the distribution chain. Please see edit. |
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