Idea in brief
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Co-ops produce huge costs savings for members—it’s the reason most members join.
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Co-ops free leaders from the demands of logistics and administration, allowing them to focus on their organizations’ missions.
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Co-ops also deliver less tangible benefits that many members find equally (or more) valuable: camaraderie, sharing and learning from fellow members’ experiences, improving their leadership and other skills.
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Bulk purchasing can also strengthen the community and advance social goals.
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Including members from different sectors strengthens co-ops by bringing in more perspectives and more information. It also makes it easier for smaller members to participate in co-ops.
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Child care centers may face a challenge in maintaining purchasing co-ops: many centers are small, which limits their purchasing power. To overcome this challenge, child care shared services initiatives should consider diversifying their membership to include other types of organization. Government could also help by providing subsidies.
“Members of purchasing co-ops often feel their biggest benefit is not savings but relationships.” — Felipe Witchger, CPA Founder
This case study, ‘Savings, Insight, Social Change,’ profiles the Community Purchasing Alliance (CPA, a purchasing cooperative based in Washington, DC), offering lessons for child care leaders considering cooperatives for their own sector. It discusses CPA’s goals, history, and operations, as well as the financial and other benefits that co-ops provide.