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How to Start Your Own Produce Co-op
Posted By Crystal Paine On June 28, 2010 @ 1:10 pm In LITE Feed (non-deal) Posts,Money-Saving Ideas | Comments Disabled
After reading the post and comments about Bountiful Baskets , Deja wrote and asked if she could share how they set up their own produce co-op very similar to Bountiful Baskets . Her article is packed with great information if you’re looking for a way to save money on produce. -Crystal
Guest post by Deja Armstrong
Several years ago, a friend of mine came up with the realization that we were spending lots of money buying fresh produce for our families. We live in Texas and don’t have Aldi .
My friend decided to see if we could save money by buying fruits and veggies by the case and splitting them among several families. Our co-op was born out of this idea and it’s been 3 ½ years of great savings.
1. Contact the Produce Manager (in person) at your favorite grocery store.
Tell him or her that you know 15 to 20 families who are are interested in regularly purchasing about $300 to $450 of produce each week. Say that you’d like to work with him or her to come up with a volume discount for making a consistent large purchase.
Like the rest of us, Produce Managers are responsible for their productivity and sales, so knowing that they can boost their weekly numbers by several hundred dollars should be appealing to them.
Now, you can’t go in and ask for a unilateral 20% discount, but you can try to get a good deal for you and your friends. Generally, my store gives me a 15-20% discount on my entire purchase. Sometimes, though, the savings are much more.
2. Come up with a cost per family to participate and spread the word.
In our co-op, we have “Shares.” Single Shares are $15 and Double Shares are $28. I give a Double Share a discount because they often are easier to sort. I tell people that a veggie-loving family of four to six will eat through a double share in less than a week. Smaller families or those trying out our co-op opt for the Single Shares.
Once you have your cost, then you start telling everyone you know about what you’re trying to do and get their commitment to try it. For our group, we do not place an order with less than 18 shares. In my experience, my Produce Manager is more generous with the discounts when I’m spending over $350.
The last time I calculated, a $15 Single Share at market value was about $23. (I checked the price of produce at the store I bought my cases and Walmart.) That savings is bigger with a Double Share. In that instance, you’re getting about $46 worth of produce for $28.
3. Find out what fruits and veggies your friends like and loathe.
People won’t order each week if you buy strange things. At first, we got cauliflower every week and quickly found out that people didn’t like it that much. Now I get it every few months. If you’re a spreadsheet person, make one. I just write it down in my notebook.
We tend to get the basics. Each week I order romaine, loose carrots, bananas and apples. These generally are well below market value prices, so I always get them.
Then, we add items like broccoli crowns, green beans, potatoes, onions, cucumbers, zucchini, summer squash, corn, tomatoes, cauliflower, sweet potatoes, asparagus, avocados, celery, oranges, pears, peaches, nectarines, kiwi, mangoes, strawberries and grapes — “normal” foods. While I may like artichokes, I don’t assume everyone else does, so I try to stick with mainstream fruits and veggies.
I also buy seasonal fruit and vegetables because the prices are even lower.
4. Research case quantities and weights.
Ask your Produce Manager how many items or pounds are in cases of the things you are considering. For me, romaine comes in cases of 18, carrots are 25-pound bags, strawberries in flats of eight and apples are in 40-pound cases. These are important things to know, so that you know how many cases you’ll need to purchase in order to meet the needs of your group.
5. Prepare an order based on how much money you have.
When I’m ready to place my order I have written down how many Single and Double Shares I have and how much money I have to spend. I come up with the list of items I’d like to buy and write down the pre-arranged prices for certain items and my “hopeful” prices.
I call my Produce Manager and we work through my list. Sometimes we negotiate. Other times I’m told “This is the best price I can give you.” I take it or leave it, based on what I have to spend. I try to buy five to six different fruits and five to six different vegetables.
I also keep track of each week’s order, so I don’t order the same items consecutively. I keep all my co-op information in a notebook. You can come up with a spreadsheet or print out a chart if you’d like. Notebook paper works for me.
On Produce Day, I go to the grocery store and pick up my produce. My husband takes the back seat out of our minivan so I can get it all in there. I meet up with the manager and we go over the order. It usually is sitting in the cooler on a cart for me. Once we double-check everything, I go to the check out to pay while a member of the produce department loads my van.
We unload and begin to sort into laundry baskets. (Each co-op member is responsible to have two laundry baskets marked with their name to use for their co-op purchases. They pick up their full basket each week and drop off their empty basket from the previous week.) We determine how many items go in each basket based on how many shares we have. Many items have the actual case count printed on the end of the case, or the Produce Manager has told me how many items are in the case.
Often, I end up with leftovers after evenly dividing everything. If I have 18 Single Shares and six Double Shares, and nine apples, the Double Shares get the first six, and the rest go into an “extra basket.” The extra basket gets the random carrots or whatever that doesn’t evenly divide. It’s first come, first served for people to take whatever they want from the extra basket. Also, my cantaloupe or asparagus-loathing folks can put theirs in the basket, and take a handful of whatever they want to make up for it.
I have a 30-minute window for people to pick up their baskets. When they come, they bring their empty basket and sit it on my front porch, and then pick up their full basket. Often, they will also pay for the next week, so they only make one trip to my house.
My total time investment is about two to four hours each week. The bulk of that is on produce pick-up day. It might take a bit more time upfront getting things organized, but once it’s running, your time investment is much less.
First, I take a free Single Share of produce for every 10 Shares sold. I do purchase Shares to help us meet our 18-Share minimum, if necessary. However, usually two to four hours of work gets me $40-$50 in free produce for my family. Since I do all the work, folks in my co-op don’t mind me taking free produce.
When calculating how many shares I have, I add my shares to the total, but don’t add the money. So I’m buying 30 shares of produce, with 28 shares of money.
The co-op also gives my children a chance to practice their math skills while sorting. And it gives them a excellent opportunity to serve others by lugging cases of produce into the dining room, sorting hundreds of apples, opening the doors, playing with littles while mom visits and carrying baskets out to vehicles. While we know many people in our co-op, there are many others who have joined by word-of-mouth. That has given us a tremendous opportunity to minster to others.
Deja Armstrong has been married for 16 years and is a homeschooling mom to 5. She spends about $400 per month on groceries. She’s values family and is about to launch a Titus 2 blog for women in her church.
Photo credits: ValsPhotos; Colin; tifotter 
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URL to article: http://moneysavingmom.com/2010/06/how-to-start-your-own-produce-co-op.html
URLs in this post:
 the post and comments about Bountiful Baskets: http://www.moneysavingmom.com/2010/06/bountiful-baskets-co-op-15-for-a-laundry-basket-full-of-produce-select-states.html
 Bountiful Baskets: http://www3.bountifulbaskets.org/
 Aldi: http://www.aldifoods.com/index_ENU_HTML.htm
 ValsPhotos; Colin; tifotter: http://www.flickr.com/photos/tifotter/352533249/
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