Hi, I'm Nat Ryan.

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Monday
Jul212014

What Is a Food Buying Club & How Does it Work? 

Part 1 of 3 posts on Food Buying Clubs

After much research, I have a lot of information to give you about food buying clubs. And I know that you're way too busy to read one super-long blog post. So I'm breaking the information I have for you into three parts and posting each part on successive Mondays, starting today with Part 1.

So 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.

Next Monday, in Part 2 of Food Buying Clubs, I'll be showing you the different types of food buying clubs and who sells to them.

In the meantime, if you would like more information about food buying clubs, 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

 

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