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Starting a Food Co-op - 11/5/2008 8:28:33 AM
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Ellie-Mae
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My Aunt is disabled and would like to find away to earn extra money. She is thinking of starting a food co-op.
We have many ideas on what we will need, but have many questions.
Will we need insurance because people will be coming here to pick things up?
Where do we find a company to work with?
I know that we will need bags and a good scale. but what else?
If you have had experience with co-ops, and tips or advice would be appreciated.
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RE: Starting a Food Co-op - 11/5/2008 11:26:30 AM
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Wild-Rose
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What is your definition of a food co-op? I was in a food co-op once but nobody made a profit. We all pooled our money, and bought in bulk in order to save money.
Are you saying she is going to buy in bulk and sell at a profit, at retail prices?
We had about 8 families and each family took a turn buying in bulk at the farmers' market. We always got about 5 fruits and 5 veggies and one surprise (such as nuts or candies or jam). As for fruits and veggies we focused on what was in season at that time.
I know I'm not helping, but I'm encouraging you to define what it is she wants to do. Then maybe someone can help you.
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Wild-Rose
Rejoice that your name is written in heaven. Luke 10:20
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RE: Starting a Food Co-op - 11/5/2008 12:56:12 PM
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Ellie-Mae
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She would handle the orders, money, dividing up things between families (when necessary) and pick up of orders. People would pay less because they are buying in bulk, but have a small fee or percentage that would go to Aunt Shirley for all the work she would be doing.
I was a part of one years ago, but only got to do it a couple of times when the people doing it moved away. I never got a chance to really get to know how it was run.
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Please do not PM me about this message, discuss it at the water cooler, or include it in your church bulletins. If you have questions, please keep them to yourself. ~Kerrlaw
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RE: Starting a Food Co-op - 11/5/2008 1:25:15 PM
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Wild-Rose
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quote:
PRAISE THE LORD -- MY HUSBAND IS BACK FROM IRAQ
Amen! So glad to hear the good news!
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Wild-Rose
Rejoice that your name is written in heaven. Luke 10:20
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RE: Starting a Food Co-op - 11/5/2008 1:33:02 PM
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Ellie-Mae
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The ones that I have known about around here have been done by a family or group of family that heads it up. Maybe it is just different in this area. Maybe I will have to just dig around and see if I can find one around here... I think I know one lady who might still be doing it.
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Please do not PM me about this message, discuss it at the water cooler, or include it in your church bulletins. If you have questions, please keep them to yourself. ~Kerrlaw
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RE: Starting a Food Co-op - 11/7/2008 10:39:02 PM
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PrincessDonna
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I hate to be the voice of negativity, but I don't think this is a good option for AS. It sounds like a lot of physical work and her health is not the best. If she can't do it, will you be stuck doing it, as well as finding ways to take care of her and everyone else in your house? The only way I can see it working is if your mom and AS do it together and your mom is committed to keeping it going even if something happens to AS.
That said, if you DO go ahead with this, I think you would find a market in our church, especially with whole foods kind of things. But you'd have to find out what kinds of things people would like to be able to get and other stuff I can't think of off the top of my head. For instance, if I were going to purchase from a co-op, I would not want to get things I would not use. Would participants be able to pick and choose what they wanted from a list of things? I'm not sure how that works. I do know that CAP has a program called FoodSense and the participants don't get to pick what they get each month. I do not care for that kind of program, but one I can pick and choose, I might.
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He fulfills the desires of those who fear Him;
He hears their cry and saves them.
The Lord watches over all who love him,
but all the wicked He will destroy.
~Psalm 145:19-20~
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RE: Starting a Food Co-op - 11/7/2008 10:53:42 PM
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Ellie-Mae
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Yes, you could pick what you want.
if AS does this, we are looking at doing it with her as a family, but she will be doing all the business and organizing of it. We would all work together to divide the food up, and put people's orders together.
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Please do not PM me about this message, discuss it at the water cooler, or include it in your church bulletins. If you have questions, please keep them to yourself. ~Kerrlaw
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RE: Starting a Food Co-op - 11/10/2008 8:24:48 AM
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P31W
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quote:
She would handle the orders, money, dividing up things between families (when necessary) and pick up of orders. People would pay less because they are buying in bulk, but have a small fee or percentage that would go to Aunt Shirley for all the work she would be doing.
This sounds like a "for profit" business.
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RE: Starting a Food Co-op - 11/10/2008 3:54:15 PM
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Wild-Rose
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Yes, that's what she said in the OP. Her Aunt Shirley needs to earn a profit.
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Wild-Rose
Rejoice that your name is written in heaven. Luke 10:20
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RE: Starting a Food Co-op - 11/11/2008 1:30:11 PM
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P31W
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Thanks,
I am kinda confused by the term co-op maybe. Co-ops are "jointly owned". Like most of the other posters most are non-profit but I do know some that are for profit. I guess she could form one and the members who own it pay her a fee for running it.
Ellie,
Check with your local sales tax office to see if you need a resale tax number. Your Aunt need to let her insurance guy/gal know she is planning to operate a business out of her home. Ask for a quote on what it would cost to have the additional coverage.
When you are "very small" it can be cheaper to just watch the sales and buy food from local walmart, sams club and the like. I know when we were very small and could not place huge orders the local restraunt and grocery supply groups did not want to fool with us. In fact the prices they quoted us was higher than anyplace in town or sale or not.
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RE: Starting a Food Co-op - 11/11/2008 2:24:45 PM
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momma_bee
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My electric company is a co-op and they make a profit. I see a portion of that as a dividend check based on the number of years we have owned 'stock' in the company. I'm sure the pay their employees, linesmen and office staff before they do so.
We don't have the type of co-op you are describing, unless it is a Pittsburgh area thing. We do have a few garden co-ops. You give them money they use toward seed and feed and then you get a share of what is grown. If 5 people buy in, the stuff gets split 6 ways, and the 6th portion is sold to other, individual buyers.
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RE: Starting a Food Co-op - 11/14/2008 11:39:50 AM
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P31W
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I think in co-ops you don't have stock owners rather you have members? I could be wrong.
Ellie are you still around? Your Aunt may want to just start with a buying club before jumping into a business. That could save you all alot of time and headaches with the state and federal people. You could learn the ropes in a cheaper way and see if it's going to be profitable as a business venture.
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RE: Starting a Food Co-op - 11/14/2008 11:55:05 AM
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momma_bee
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(it is off the topic itself a bit, sorry Ellie.
It says "owned by those we serve" on the bill, it is called a dividend payment and member since 19**. Going back to the field trip a few years ago it may be different than the co-op Ellie is talking about becuase it is a utility)
So, Ellie. AS is looking at buying in bulk, selling in small portions and passing the savings along and charging a fee for this service or alternately, passing some savings along, but not all of the savings and keeping a portion of the savings to cover expenses and hopefully gain some income either way.
Right?
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RE: Starting a Food Co-op - 11/14/2008 12:29:39 PM
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Ellie-Mae
Posts: 3569
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From: The EMPIRE state!
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I am still here (I am always somewhere here  )
That might have be a good way to start. I, personally, don't want to invest a whole lot into this until we know that it will work.
Back when I was one of the buyers, the person in charge had a hard time getting enough people to put their orders in, and many people were uncomfortable and reluctant to buy in bulk. It made it very frustrating because sometimes there weren't enough orders to put one in. that meant that we would have to wait for another month or two before we could put in an order... and we had to use our money at the store which meant that sometimes, by the time the order was ready, we couldn't put in an order anymore. Things have changed since then. Most people have email making it easier for people to find others to split large orders with. I would think that it would be much easier to put together orders now that we have better means for group communications. Also, it seems to me that more people are buying in bulk than there used to be. AS has a wonderful ability to organize and keep track of things so I thtink that she would be up for the organizational part of it.
I have never thought of using our Sam's club membership to buy stuff that can be split up for other people... I will have to put some thought into that.
_____________________________
Please do not PM me about this message, discuss it at the water cooler, or include it in your church bulletins. If you have questions, please keep them to yourself. ~Kerrlaw
W2D1
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RE: Starting a Food Co-op - 11/14/2008 12:35:19 PM
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P31W
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If you are your aunt decide to "resale" some of the food let me warn you of something that I have found bites many people in the behind simply because they don't realize it.
Any food that you use youself you will need to report and pay sales tax on it. You need to make sure you have good records. That is one of the number one things the tax folks are going to watch you for. (you must show that you paid the co-op for the food you consumed and paid the sales tax on it)
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RE: Starting a Food Co-op - 11/14/2008 12:46:11 PM
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momma_bee
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Do you pay sales tax on food you cook with in NY?
We pay on prepared food. Apples = non-tax. Apple pie=taxed.
I'm just nebbing now...
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RE: Starting a Food Co-op - 11/14/2008 1:07:04 PM
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Ellie-Mae
Posts: 3569
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AS is really good at record keeping. We will not be storing any food so everything will be paid for before we get it and then they would just pick it up when it is delivered. I was thinking of buying whole sale like through Dutch Valley Foods or someplace like that.
IF I were to do some stuff from Sam's (I am only thinking through our options), I could only see it working because the nearest one is an hour from here and many people like the prices but don't have the time and the gas to use Sam's Club much. As it is, I only go grocery shopping once every 4-6 weeks. I don't think that I would want to have that be the main way to do this though. I was thinking more that if some people wanted things from there that I could shop for them when I shop for myself (with separate receipts). I would make sure that people would know what they are paying for and where it came from.
quote:
So, Ellie. AS is looking at buying in bulk, selling in small portions and passing the savings along and charging a fee for this service or alternately, passing some savings along, but not all of the savings and keeping a portion of the savings to cover expenses and hopefully gain some income either way.
sort of. People would put in orders for what they want and they pay for it ahead of time. Because everything is wholesale (plus shipping) they get to save on what they purchase. However, they may not want a whole pound of celery seed or 6 gallons of molasses. They would want someone to split that order with. This was a major difficulty in the age of phone tag. We plan on putting together an egroup so that everyone can see what others want and be able to work together easier to put together orders and keep updated. AS would gather orders and the payments to send to the company. The company will deliver the products (hopefully to our house). We would then help her split up the orders and let people know when they can pick up their orders. The amount to be paid would be whole sale plus a percentage of shipping and then a small percentage for the work that AS does. We don't keep any food for sale here between orders.
This is how some co-ops have been done around here. There are other co-ops around that are run differently. Some are run by individuals and some are done by a non-profit organization.
ETA: we don't tax food.
_____________________________
Please do not PM me about this message, discuss it at the water cooler, or include it in your church bulletins. If you have questions, please keep them to yourself. ~Kerrlaw
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