Co-op membership

Definition

The wholesale group a store buys through, and the terms that decide its shelf price.

Why It Matters

An independent hardware store is competitive because it buys like a chain, and it buys like a chain because of its group. The membership carries the price it pays, the private label it can stock, the signage it uses and often the point of sale it runs. Whether it survives a change of ownership is a question for the group and not for the seller, and the answer is not always yes. Establish the transfer terms early, because a store that loses its group has a different cost base on the day after closing.