Food Buying Clubs
Let's start with the most basic question:
What is a food buying club?
A food buying club is a group of people who pool their resources--typically their time and energy--to buy food directly from one or more wholesale food distributors. This arrangement cuts out the "middle men" of food buying outlets, such as grocery stores and markets. In this way, the club members can get top quality food items for less money than they'd pay at the store.
The strength of a food buying club is in its members. Co-op Directory Service suggests that food buying clubs have between 7 to 10 members. They further recommend that at least one of the members of a new club have previous organizational experience with another food buying club.
How does the club work?
In my research, I found that these are the most recognizable steps that a food buying club goes through in their purchase of food:
- Most wholesale food distributors will gladly provide a price guide for their customers. The food buying club members use the price guide to make out their individual household orders.
- The individual orders are then batched together into one large group order. Members usually pre-pay for their individual orders, and these funds are also grouped together. Pre-paying allows the club to pay for the large group order upon delivery.
- The day of delivery, the club members meet at a pre-determined delivery location. It's a good idea to have at least 3 people there to receive the order, unload and check it thoroughly.
- The large group order is then divided into the individual household orders.
- Payment adjustments may need to be made to the individual household orders. This can happen for a variety of reasons, including damaged or spoiled food, or price changes between order and delivery dates.
- Finally, each club member brings home their own individual order.
Are all food buying clubs set up the same way?
No, there are several different types of food buying clubs:
- Owner run - Owned and managed by a single owner as a business. The food purchased from the distributor is then sold to other people. No membership needed. Kind of like a small, independent food market.
- Members only club - Interested people pay a membership fee to the owner to participate. The owner--and any employees he/she may have--handle all the organization and labor for the club.
- Worker co-op - This is the type of arrangement most people think of when they hear "food buying club". The club is run cooperatively among all the members. Each member gives the club their time and effort for the benefit of the whole club.
- Farm owned and operated - Most food buying clubs of this type offer just the food grown and raised on that particular farm. In some cases, though, there may also be orders placed with distributors--or even other farms.
Who sells to food buying clubs?
Not all wholesale distributors will sell to food buying clubs. For most distributors, their clients are the "middle men"-- the grocery stores and large food markets. But there are some distributors out there that can, will and do sell their products to food buying clubs. They can be any one of the three different types:
National distributor - The advantages of doing business with a national distributor are lower prices, more products to choose from and good organization.
The disadvantages may include a greater distance for the food to travel, and possibly the need for a commercial loading zone for the delivery. Non-local products may be offered as well--which may be either a positive or negative, depending on your point of view.
One of the largest wholesale food distributors that will sell to buying clubs is United National Foods, Inc.
Local distributor - The advantages of doing business with a local distributor are many, including smaller delivery vehicles without the need for specialized off-loading equipment or commercial loading zones, and the possibility of more locally sourced food.
The disadvantages, though, can include more specific cash-on-delivery requirements, a less formal delivery schedule, and an inventory that fluctuates.
Direct from the food producer - A buying club can get to know local farmers. Look for the farmers at farmer's markets and ask if they are able to handle bulk orders.
How do you find a food buying club or others who are interested in starting or joining one?
- Google It - Enter the keywords "food buying club ____________", replacing the blank with the name of your city, town, state and/or province.
- Whole food blogs - like this one.
- Craigslist or Kijiji - Create a post or page describing how you're looking for a food buying club. Ask people to get in touch if they're interested.
- Farmer's Markets - Ask people you meet at your favorite market if they know of or are interested in forming a food buying club. You might also be allowed to set up a stand where you can pass out brochures of your plans and take down the contact info of anyone interested in your area. But definitely check with the market organizers first.
When you find other people who are interested in creating or being part of a food buying club, what should you do next?
First and foremost, hold a meeting that all interested people can attend. At this first meeting:
- Talk about the benefits of being members of a food buying club.
- Make sure to emphasize that the food buying club is a cooperative effort.
- It's important to get everyone involved right away, so don't be shy to ask people to take part.
- Give your food buying club a name. Also give your club a backup name in case the wholesale distributor you'll eventually be doing business with already has a relationship with a club of the same name.
- It's a good idea to set up some kind of organizational committee. The committee would be responsible for price guides, order grouping, arranging the delivery location (as well as its maintenance, if applicable), bookkeeping, supplies, and the break down of the large group order into the individual orders.
Get lots of help!
Don't try to shoulder all the responsibility yourself. If it's really going to happen that way, you may as well just sell memberships and let the others in the club simply place their orders, pay the money for their order, and pick up their individual order when it's ready to be brought home. If that's what you want, that's okay. But if you want lots of help, then don't be afraid to ask for and expect it.
I've only scratched the surface about food buying clubs here on Whole Food Sourcing, so for more information, check out the following links:
Start a Buying Club
Co-op Directory Service
United Buying Clubs.com
Annie's Buying Club
Crown O' Maine Organic Co-operative
Ontario Natural Food Co-op