Types of Food Buying Clubs and Who Sells to Them

Part 2 of 3 on Food Buying Clubs

Today, I'm going to plunge a little deeper into the vast pool of information about buying clubs, starting with...

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.

Next Monday, in part 3 of Food Buying Clubs, I'll be showing you how to find a food buying club near you, people interested in joining one, and how to start a food buying club.

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