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Purchase Co-operative

PURCHASING CO-OP.
In a purchasing cooperative, a group of businesses from the same industry form a collective unit to bulk buy and share goods. Member merchants/industries in that purchase co-operative together purchase goods/raw materials in bulk quantities from sources at maximum lowest prices (bulk order discount) and share among. 

What is co-operative purchase?

In a purchasing cooperative, a group of businesses, retailers, wholesalers, distributors, small manufacturers, etc, from the same industry form a collective unit to bulk buy and share goods. Member merchants/ industries in that purchase co-operative together purchase goods/raw materials in bulk quantities from sources at maximum lowest prices (bulk order discount) and share among. 

Co-operative purchase examples

For example- 40-50 merchants co-operate to purchase and import 35-40 tons (40 ft container load) of DATES, each sharing 800-1000kg dates, but each merchant enjoys bulk order price- the lowest price and maximum profit.  OR

Another example- 250 individual hardware merchants cooperate for central purchase and sharing. In this, each individual hardware merchant can save 20-30 percent more in purchase cost than now. And can purchase new, trendy, and variety goods from across India and abroad being in the group- otherwise no. 

More benefits

Cooperative purchasing empowers small business owners with a competitive edge in a shifting economy. And each member merchant can purchase more for less by pooling their buying power and negotiating better pricing- from sources. This increase the efficiency, profit and satisfaction without cost.

How does purchase cooperative help? 

It helps each Individual merchant or small industry that are members of such a purchase co-op buy merchandise in bulk at the lowest possible prices direct from sources. Cooperative purchasing helps member merchants/entrepreneurs reduce purchase costs and offer competitive prices compared to others. 

Benefits to participants businesses- by purchase co-op

As part of this purchasing co-op, independent small businesses or small enterprises can be competitive and thrive in this competitive world. They can serve their local communities by offering quality products at the best prices. By joining in a purchasing co-op, individual merchants can achieve lower purchase prices, greater efficiencies, greater local popularity, and increased market power.  Individual retailers, local wholesalers, and small manufacturing industries (for raw materials) can join in purchase co-ops.  

Beneficiary businesses

  • wholesalers,  distributors, and small manufacturing industries (for raw materials) 

  • grocery/mini supermarkets,

  • hardware,

  • stationary,

  • textile,

  • meat, chicken & fish 

  • footwear, 

  • home appliance,

  • furniture,

  • small manufactures,

  • bakery,

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