Consumer cooperatives are owned by members who have a say in the organization’s operations and elect a board of directors. These co-ops aim to provide affordable products and services while pursuing community and environmental goals. They may also offer nationwide services such as health insurance and financial services.
Consumer cooperatives are organizations that are effectively owned by consumers who choose to be members of the cooperative enterprise. Known as co-operative retail corporations or retail cooperatives in some countries, these co-operative enterprises often seem to function just like any other type of business, operating shops and sometimes even factories. The difference is that the organizational structure of the consumer co-op is different from that of a corporation and that the members have a greater involvement in what goods and services are offered and in general how the organization is run.
A consumer co-op is often organized in a way that includes the use of a board of directors elected by the members. With most cooperative organizations of this type, each member is allowed one vote on any given issue facing the organization, including electing people to the board. All employees of the cooperative, including managers, executives and staff working in the shops or factories are accountable to the board of directors. The board of directors in turn is accountable to the membership for the financial health of the cooperative, as well as how the board works to move the organization closer to achieving its goals.
From the outside, a consumer co-op will often appear to be a business, as the outlets are managed and managed, enabling buyers to purchase goods. The difference is that the buyers are usually members of the co-op who have chosen to pool their purchasing power in order to stock shelves with goods that can be purchased at very competitive prices while generating revenue which collective membership can then use to pursue some kind of goal. For example, a small local consumer cooperative that aims to promote local businesses may combine its resources in order to offer local producers of selected goods and services the opportunity to market their products at the cooperative’s shop, at prices that are acceptable to all concerned. The end result is that the producers build a clientele among the cooperative’s consumers and can use this as a basis to start marketing their products with other traders as well. This means that more money stays in the local economy and provides jobs for local citizens, which was actually one of the goals of the cooperative.
Typically, a consumer co-op is not in the business of making huge profits, although some funds above costs are needed to grow the operation. The primary objective is to provide members with products they can use at prices they can afford, including in pursuit of any goals in terms of community service, environmental issues, or other goals that co-op members have identified as part of the reasons for the existence of the cooperative. Organizations of this type may choose to remain small and based in a specific geographic area, based on the objectives of the cooperative. Along with locally generated products, some co-ops may be the means to offer nationwide health insurance plans, financial services, and even utility services such as cell phone and long distance plans.
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