The Direct Charge Co-op Supermarket

Nicholas Saunders

In Nanaimo, Canada, there is a novel structure for a consumers' co-op - which could probably do much to revitalise the moribund Co-op Society shops in this country, or could be set up independently.

The system is that members pay a high subscription which is sufficient to pay the overheads of the shop or supermarket, and non-members are excluded. Members may then buy goods at little above wholesale price, as the major costs have already been covered by their subscription. This encourages member loyalty.

'Instead of competing with other supermarkets, trying to sell more by 'special offers' and other come-ons, the Direct Charge Co-op does best if it sells less - providing it keeps its members satisfied'

The result is profound - instead of competing with other supermarkets, trying to sell more by 'special offers' and other come-ons, the co-op does best if it sells less providing it keeps its members satisfied. The co-op thus becomes a true agent of its members, aiming to satisfy their needs rather than sell them more than they want.

The system also involves many other sophistications, such as compulsory investment in the co-op by means of a check-out levy. This generates capital for expansion, and provides an essential stabilising effect - if a rival supplier tries to seduce away members, their subscriptions would be paid out of the levy until the required six months' notice elapsed.

Nicholas Saunders, top floor, 14 Neal's Yard, London WC2H 9DP (tel 071 836 9404; fax 071 379 0135).

You can rate how well you like this idea. Click 0-10 below and press the Submit button.
Bad Idea <- 0 1 2 3 4 5 6 7 8 9 10 -> Great Idea
As of 05/28/96, 6 people have rated this page with the overall rating (0-100%) of: 56%

Previous / Next / Table of Contents