Saving Money With Buying Clubs

Buying clubs, or cooperatives, have been around for a long time. In the late 60's and the 70's many people started buying clubs to save money on food, livestock feed, gardening supplies... you name it, there has probably been a buying club to purchase it at one time or another. Buying clubs allow a group of people or businesses to pool their resources and procure better prices on goods they need. For our purposes, we will consider a buying club to be a group of families and individuals that work together to order as an entity to save money on their groceries and other supplies.

My first experience with a buying club was when I was around 8 or 9. My parents belonged to one that allowed our family to purchase bulk dried goods, peanut butter and honey. I went along with my Mom to help break down the order at our community Grange Hall. I was amazed at all of the huge bags of flour, sugar, dried milk and tubs of peanut butter, cooking oil, honey and molasses. I was pretty impressed and I have to say, I really enjoyed the variety of products we brought home every time we ordered.

If purchasing through a buying club is something you're interested in, you might be pleasantly surprised to find that there are a number of clubs in your area that are accepting new members. To find existing buying clubs check on the community section of Craigslist, at churches, local organizations, health clubs and your Cooperative Extension Agency. You can also contact wholesalers in your region that may have contact information for clubs you can join. The largest national wholesaler that sells organic and natural foods to buying clubs is United Natural Foods Inc. Contact them to find a buying club near you at http://www.unitedbuyingclubs.com/Index.htm In the past I belonged to a club that ordered from this company and it allowed me to purchase natural and organic food items that were not available at the local grocery stores. I didn't find that I was able to save money on many items, but you might find that the prices and/or availability of products is advantageous for your needs.

Associated Buyers is a regional wholesaler operating out of New Hampshire. They provide natural and organic foods to buying clubs as well as retailers in the Northeast. You can find more information about their services at http://www.assocbuyers.com/ordering.asp?cid=6

I currently belong to a buying club that orders from Country Life Natural Foods. They're located in Michigan and deliver to a portion of the Midwest. You can find more information at http://www.clnf.org/homepage.asp. I find that the prices on organic flours, dried fruits, nuts and bulk goods, as well as organic nut butters and oils are less expensive than similar products at the grocery store. I order from them every other month.

Last year I started a buying club through Frontier Herbs in Iowa. They sell spices, herbs, beauty and personal products at wholesale prices to buying clubs that are members of their co-op. There is a $10, one time fee for membership. You can find more information and order a free catalog (or look through their online catalog) at http://www.frontiercoop.com/images/buyingclubmasthead.jpg. They have a minimum order of $250 to receive free shipping, but you can place smaller orders and pay for shipping if you wish. The turnaround time on their orders is just a few days and you can order on any business day. They collect retail taxes from customers in some states, unless you belong to a non-profit organization and fill out the proper forms.

If you can't find a buying club in your area or they are not accepting new members, you may wish to start your own. There is some leg work involved and you will need to pool your resources with other people who are interested in starting a buying club. There are some excellent sites online that give the basic information needed to start your club. Check out the following resources to see if this option is right for you. http://startabuyingclub.com/. This site gives some great information. You can click on a list of distributors, plus they have links to sites (foodclub.org and buyingclubsoftware.com) where you can sign up for free software programs that allow you to gather and place your orders and keep track of split cases. They go through the step by step process of deciding if you want to start a buying club, how to set it up, how to divide the responsibilities, and a lot of the details that need to be carefully considered before you take the plunge. Also check out http://www.vegfamily.com/articles/coop-food-buying.htm. This is another site that gives some points to think about as you make your plans. They are looking at the buying club from the perspective of purchasing organic and vegetarian foods, but the information is applicable to anyone interested in this process.

You will also need to consider whether or not you want to organize as an informal group, or do you want to put in the extra effort to start a non-profit organization so you don't have to pay retail taxes on your purchases. This is a more time consuming proposition and you will need to check into the state regulations in your area.

In addition to buying from wholesalers, you may want to check into local food producers. This is a great way to support your local farmers, market gardeners and craftspeople. There may be local businesses in your area that sell a product that you would like to buy on a regular basis, but can't meet their minimum order. Banding together with a buying club may give you that opportunity. You may also want to check into local CSA's (Community Supported Agriculture) that sell shares of their locally grown produce in season. This is a great way to get healthy produce even if you can't tend your own garden.

As you form your buying club and look into the various products that members want, you may find that you are able to pool your orders from other companies too. Our buying club was interested in organic, fair trade chocolate, but it was not available through Country Life Natural Foods or Frontier Herbs. I started looking at different companies online and found a company called Santa Barbara Chocolates that provides high quality chocolates in bulk. I emailed the information to our buying club members, let them know which products I was interested in purchasing, pooled their orders and purchased online with my credit card. When the chocolate arrived I weighed out each person's share and bagged it up. When they came to pick up their chocolate they paid me for their purchase. We all saved money by buying in bulk, even though we did not place a wholesale order. With a little research you will find plenty of companies online that offer free shipping for orders of a certain amount, or they may have loyal customer programs and coupons that allow you to purchase a wide variety of products.

If you belong to an artists' guild, sewing or quilting circle, livestock owners' association or other group with similar needs and interests, you may be able to use the buying club formula to order supplies for a reduced price. Check online to see if there are companies that provide the goods that you need and contact them to see what they require and if they are willing to work with your group. You may be surprised at how much buying power you will gain by joining forces with like-minded individuals!