Patronage rebates are linked to one of the core principles of a co-op: we exist to serve our member-owners. The redistribution of profits to our members is aligned with the Third Cooperative Principle, “Members contribute equitably to, and democratically control, the capital of their cooperative. . . Members allocate surpluses for any or all of the following purposes: developing the cooperative. . . supporting other activities, or distributed to members in proportion to purchases.” If a store finishes the year with a profit, the board can decide that the surplus be distributed among members based on how much they spend in the store.
Using your member number when you shop is important because it is how we determine your rebate amount. Your transaction totals are recorded at the registers, and at the end of the year we run reports to determine your total purchase amount. We then total all the sales from members. Next, we calculate your total contribution to member sales as a percentage. This percentage represents your proportional share of the profits.
Within the co-op world, patronage rebates are viewed as an excellent way to get our members invested in the success of their local co-op.
Read more about Patronage Rebates:
Case Study: Patronage Rebate System Initiates 50 Ways to Love Your Co-op - Cooperative Development Services
Create a Cooperative Legacy in Your Community - CDS Consulting Co-op
Learn more about patronage rebates at Bloomingfoods:
Fiscal Year 2009 (July 1, 2008 - June 30, 2009)