Filling the gaps... creating a Buying Club aka Food Co-op

When we moved to the Ozarks in 2004 one thing that I missed from our life in IL was our food co-op.

Sure I missed the food, but what I missed more was the sense of community... the sense of belonging with a group of like minded individuals that came together once a month to share their time and talents (including recipes!)  The co-op that we had belonged to would gather together for baggings every four weeks.  We would bring our children and spouses (when they could).  We started our meetings with prayer and address any needs that members had such as once one of our members lost her house in a fire.  Because this coop charged a fair amount in fees they had built a co-op fund that allowed us to take a vote on letting the co-op funds pay for her co-op order and donate all the left over splits that typically would get "auctioned off" at the end of the bagging.  It felt so good to be able to Bless someone like that.  I never would have been able to do something so profound on my own, but as a group we were able to make a difference in this families life and it made us feel good knowing that we could do that for them.

When we moved here I looked and looked for a co-op group that held baggings like that and offered a sense of community.  I couldn't find it.  After calling to inquire about starting up my own buying club I was shut down by the company that would supply us.  They said that they were not opening any new accounts.  I called a few years later... still not.  So, I went ahead and joined a group that was the closest to us.  It was a 45 minute drive away!  YUCK!  Rain, snow, sleet, etc... I had to be at a designated building to pick up my order at a designated time that changed from one month to another.  Sometimes I would already be on my way and they would call and leave a message... "pick up has been postponed until 9pm"  I was already on my way to a 5pm pickup. grrrr...  I had a brand new nursing baby, another under 2, our 10 yr old daughter and 15 year old son with me... can you say "frustrated"?  Calling to post-pone baggings or change dates at the last minute happened 7 out of the last 9 baggings.  We could no longer do it... enough was enough....

So, what were our options?  I called UNFI <again> still closed us off in our area... refused to open another account.  It didn't matter to them that they picked up nutbutters just 15 mins from our proposed delivery location (the local firehall), it didn't matter to them that I had 20+ families lined up, it didn't matter to them the inconvenience that being on the road for an hour and a half round trip and the 2 hours waiting in line for them to open the hall and let us get our stuff.  Nope... I realized then that we were just a number.  They didn't care that I had consistently placed $400 orders every month for the last 5 years with them through the other group.  The minimum total (all members combined) order for a delivery was $500... just one neighbor and I would have had that.  We were just a number... so, I walked away...

I had enough stocked up and I was frugal with how we used it, but I knew we needed a solution soon.  I called and emailed a lot of potential companies.  Then I found Country Life Natural Foods.  Just what I was looking for.  A Christian Company that would know me by my name and treated us like we were family.  I looked over their product catalog.  Scanned the internet for other suppliers (again) just in case... but always came back to them.  They may not offer all the big box items that we were accustomed to being able to get and they don't carry anything that requires refrigeration, but I decided we could live with that... in exchange for a wonderful company with great people that were always happy and enjoying their jobs.  We are NOT a number! :)

So, now that I had found a supplier that I felt confident in... what to do next?  I had already had several people that were interested and had continued to ask me over the years if I would consider starting one... so, from their our list grew.  Contacting potential members... Fun!  I love talking to people... lol!

When I started up Willow Mountain Food Cooperative in August of 2011 I had every intention of setting it up just like the co-op I belonged to in IL.  I started it that way - hoping that people would be able to take a bit out of their busy lives to help with baggings and distribution, but that wasn't to be.  We live too far away from town for the people there to come here and the people that live in our area are too busy.  So, we decided to run this a little differently.  Hoping that the small fee we had decided on would pay our expenses and give me a little for the extensive time I spend putting it all together.

I have been Blessed with members of our group that truly appreciate our efforts.  My husband and children are supportive and helpful and we do the main separation as a family then I am left alone to weigh out the split cases of grains etc.  The following day is distribution day.  I have a few people that live nearby that come to our place to pick things up.  However, the bulk of our orders come from two towns that are 30 to 40 minutes away.  So, when we do our mushroom deliveries Bob takes our co-op orders with him to meet or deliver depending on where they live.  It works.

Blooming Prairie was a co-op distribution center that we had gotten goods from when we lived in IL.  They had a wonderful write up of "How to Start a Cooperative Food Buying Club".  I found the old webpage and since I'm not sure how long it will still be up... the company is gone as far as I know... I am putting it here.

"WHAT IS A BUYING CLUB?

A buying club is a group of people who volunteer their time and energy to purchase high quality, healthful foods at affordable wholesale prices. Members equally share the work among themselves thereby trading their time for lower prices. Buying club members enjoy the community aspect of working together and often learn new skills.

HOW DO COOPERATIVE BUYING CLUBS OPERATE?

There are five basic steps in processing an order:

1. Members use the Blooming Prairie Price Guide and monthly Prairie News to make up their individual orders, which are then compiled into a group order. Usually they pre-pay their bills, so that the club has the money to pay the Blooming Prairie truck driver at the time of delivery.

2. This group order is sent by modem, called in, mailed or faxed to the warehouse.

3. Members meet a Blooming Prairie truck at a designated delivery site, with at least three people available to unload and check in the club's order.

4. Members divide up the order into individual household orders.

5. Individual bills are re-computed after the delivery. Credit or debit adjustments are made as needed, and members take their groceries home.

HOW DO I START A COOPERATIVE BUYING CLUB?

We recommend you have seven to ten households to start a club. This allows for the sharing of responsibilities among members. It's a good idea for at least one of you to have some organizing experience, such as with another buying club. If no one in your group has experience, you may want to join another buying club in your area, at least temporarily. Call Blooming Prairie for club contacts closest to your area. Talk up the idea with family, friends neighbors, and co-workers. Share copies of our current price guide and monthly sales flyer; it will give prospective members a clear idea of what is available to them and at what prices

Hold a meeting! Invite all of those people who are interested in the buying club idea. This gathering is an opportunity to emphasize the cooperative nature of a buying club how members share the work fairly, trading their time for high quality organic and natural foods at wholesale prices. Keep in mind it's important to get everyone involved in the club from the beginning. This way potential members expect to participate.

This is a good time to set up an organizational committee. Areas this committee will want to cover include: overall coordination, price guide and sales flyer distribution, ordering and collating, delivery location, break-down, supplies and equipment, bookkeeping, new member orientation and cleanup. As time goes by the committee will need to adjust some as the club grows and changes.

Discuss details such as the proposed delivery site and what supplies and equipment you'll need for the break-down. Decide on membership requirements.

When locating a breakdown site, consider practical details Possible delivery and distribution sites are churches, town halls, public buildings, fire houses or county fairgrounds. Site needs include accessibility for tractor trailer trucks enough space for the order to be sorted out, and flexible hours of availability. Remember, Blooming Prairie will not deliver on gravel or unpaved roads. Optional, but nice to have, is a sink for washing and clean up, a refrigerator, a freezer, and a phone.

Before ending the meeting, choose a name and a backup name for the club. (We may need to use the backup name if the first choice is a duplicate of an existing club.) Fill out the member application along with a map to the delivery site and mail it to Blooming Prairie. We need this prior to placing your first order. You will receive a confirmation call providing the club contact with the order deadline, delivery date and a short orientation.

Blooming Prairie has been serving cooperative buying clubs since 1974. We are committed to giving our members high quality healthy foods at affordable prices. In addition, we have support staff and materials available to assist the club along the way. Please feel free to contact the Buying Club Representative at any of the numbers listed in the left hand column for assistance. We look forward to hearing from you!"  http://www.coopdirectory.org/bp003.htm

Another good article they had on their site is " Tips From Successful Buying Clubs".  Maybe some of them will help those thinking of starting their own club so, I've included that article here: "

• Computerize: less work is better. A good personal computer program designed for buying clubs will save a lot of time on order-collating, bookkeeping, label-making, etc.
  
• Focus always on making the co-op fast, easy and convenient for your members. This is the best way to draw and keep satisfied members.
  
• Share the work fairly. Divide up the work so no members are doing a lot more than others.
  
• Create jobs for interested members who have special scheduling or other needs.
  
• Plan to grow. More members mean less work and cheaper food for the members, and greater stability for the co-op.
  
• Offer your members the largest selection of products possible, including everything the warehouse sells. More choices make for happier members!
  
• Use a minimum/maximum mail-in ordering system. Have an auction meeting only if most of your members want one. Schedule it after the min/max compilation and make it optional.
  
• Use an extras table. If after collating the orders, members have ordered at least 3/4 of the wholesale amount of an item, order that item and sell the uncommitted amount at an extras table during the divide. An extras table ensures that people actually get more of the items they ordered and gives other members a chance to see products before purchasing them. Many groups swear by it, and rarely have any inventory left over to sell at the next divide. Put somebody in charge of it.
  
• Orient new members. Let them know clearly from the start what they can expect from the co-op and what the co-op expects from them. You may want to set up a trial ordering/trial membership period.
  
• Keep meetings as short as possible.
  
• Share recipes and food often within your group. Usually, members are willing to order an unfamiliar product if they learn what to do with it and/or get a chance to taste it first.
  
• Have the co-op itself order one case of a new or unfamiliar item with each order. Let members sample it while they work. Many co-ops have found new favorites by doing this.
  
• Have fun! Enjoy yourselves! The camaraderie of working together is a big part of a buying club. Also, set aside some time just to socialize: a half hour before a business meeting, have a potluck or picnic.
  
• Publicly support and recognize your leaders and activists. Have as many ways of doing this as possible (be inventive!) and your co-op will keep skilled people and encourage new experts to develop.
  
• Buying clubs are often not visible in their communities. Local people who would like to join may not even know you exist. Become more visible. Actively network with as many other community organizations as possible. Have your co-op contribute to your community by donating a cookbook to the public library, by regularly giving food to the local food bank, or by co-sponsoring a health-related event. Your buying club can become a community resource on healthy food. Offer cooking or nutrition classes to senior centers (lower cholesterol), day-care centers (healthy snacks kids can make for themselves), schools, etc."  http://www.coopdirectory.org/bp001.htm

Again, since Blooming Prairie (like many other smaller distributors) has been eaten up and swallowed by UNFI... I really am not sure how long that page will be in existence and frankly I'm surprised to have found it!

So, I had 3 months of orders and baggings under my belt and all this time I had been contemplating "organic produce".... hmmmm.... who is out there that we can get produce from - at an affordable rate?

I knew of Alberts Organics, but really didn't want to succumb to ordering through them as they are part of UNFI.  I held the application I had printed out in my hand - then in my co-op folder file for 2 months... intending to start it up, but not really wanting to be a number.  We had been told about Tree of Life... I wasn't sure.  Then the break happened!  We found out about Growers Organic!

From their website:

"Quality. Service. Passion.

Grower’s Organic was incorporated in 2005 and established to provide you, our customer, with an intimate link to the farmers who harvest the food you eat and share with others. Led by Brian Freeman, our team combines their talent for quality and service with their passion for organics to bring you the freshest produce available."

Basically they work with small specialty organic farms to distribute their products to health food stores, home delivery services (us) and the like.  ALL of the products that they handle are Certified Organic.  So, there is no question of that.  They work with the family farms first and then the big growers to fill in any blanks.  We are on pins and needles this week as we get in our first truck on Tuesday!  They will be delivering weekly to us in Springfield.  Yes, that is a drive, but we are up there delivering our mushrooms so we are more than happy to pick up our order there.  They are also looking at expanding their route to go a bit further east... thus encompassing our area!

As I stated above we had created the co-op in hopes of utilizing the same format as the co-op we belonged to in IL.  That didn't work out.  So, this is how things have worked out.
I send out an email or call people to let them know to start putting together their orders the Wednesday before I call for them to be due.  Some people would like to 'share' or 'split' a case or bag of something.  So, I create what is called a 'splits report' and email that out or call the people that have placed orders and don't have email.  I require that the splits report be filled in and sent back to me by Saturday night.  I look over the splits again and see if there is anything that is close to being filled... if it is I will send out another call for anyone that was maybe on the fence or could pick up more of something to help fill the case.  If the case is not filled I do not order it.  I just can't have things sitting here in storage waiting for someone to buy it or for us to consume it.  I would have to pay for whatever I do that with out of our own families budget and I just don't have the extra funds to do that with.  Having a co-op store is something that we have toyed with, but at this time, it isn't a viable option.  Once everyone has their orders to me that Saturday they also give me the estimated funds to cover their individual purchases.  I make the deposit on Monday and call in all the orders.  A few of our vendors require payment upon ordering.  By collecting the funds upfront I am able to place those orders with confidence that I won't be bouncing a check.  Frontier Co-op is one of the companies that we order from monthly that we pay upfront for.  They offer a LOT MORE in their wholesale catalog than they do online.  To get going simply fill out their wholesale application and you are in business!  I believe you will need your state tax id number.  You need that for virtually every distributor and manufacturer that you work with.  They have to have that for their files.  I have a wholesale account with a number of products from organic cotton clothing to wahm cloth diaper company to organic and hemp fabrics to wahm hand made soaps to USA made soaker hoses to several supplement companies and will be setting up with an heirloom seed company before long.  There is so much that you can work with - combining orders to meet minimums and sharing in the cost of shipping.

Cooperatives.... (as Martha would say)  "I'ts a Good Thing"

So here are my tips if you want to start up your own co-op:

• decide on a name
• register with the state to get your tax id number
• decide how you are going to operate the group.  Will you be performing the service and distributing the orders?  or will it be a non-profit with a president (leader/you), vp, secretary, treasurer?  Baggings? Pick up or Delivery? Will there be a monthly membership fee?  Coop fee/% charged to order?  I have belonged to groups that have charged as much as 11% and as little as 3%.  It just all depends on the amount of time they have to expend and the expenses they incur during operation.
• calculate potential expenses - fuel, postage, office, bagging supplies, scales, scoops, rent of bagging site etc (your fees should be covering your expenses)
• write up guidelines to give to potential members
• create a list of potential members
• contact potential members and find out what they would be looking for in something like this
• create a list and contact potential vendors to get product/price lists and min order information.
• gather all the catalogs, price lists etc to distribute to the members 
• create an email that you send to new members welcoming them to the group - include information about ordering, general coop guidelines, distributor websites and a schedule.
• get everyone on board... get orders (you may have to make a few calls)... fill splits... get funds... place that first order and away you go!  Enjoy the adventure!
• one final tip... don't jump in head first... bring in one distributor at a time.  You don't want to burn out on start up.

Happy Co-oping!!!