Joint Cooperative Coordination
The TTCC is establishing of shared cooperative effort among like small business members to service one another. The primary goal being to reduce their respective costs and increase competitive position against large businesses having larger buying power and shared overhead. The Internet has given distributors easy access to the customer with no store front/sales force that small business incur.
TTCC hopes to give our members a more competitive position through coops that jointly advertise, provide shared Internet service, and shared purchasing. More diiverse support could include Joint Legal/Regulation/Financial Assistance, Cooperative Coordination. (businesses serve as a provider/coordinator of their business offerings in joint effort, i.e. attorney group offer new business filings, municipal permits/lease/purchase/personnel agreements; or bankers offer business checking loan/credit line products; at preferential discounts services to Chamber members)
Further dialog and coordination will be conducted in the coming months to find members willing to entertain forming a coop for the applicable purpose described on this page.
What Is Cooperative Business and How Is It Different?
How does cooperative business differ from ordinary commercial business? See Wikipedia for greater Coop description at https://en.wikipedia.org/wiki/Cooperative
There are four main ways in which a cooperative business differs from a commercial business:
1. A cooperative business is set up by a group of individuals to obtain services for themselves at cost in order to reduce
overhead and be more competitive —not to obtain solely profit from rendering services to others.
2. A cooperative business tries to render the greatest possible benefit to its members; not to make the largest possible profit.
3. A cooperative distributes any surplus income over the cost of doing business among those who are served by it, in
proportion to their use of its services—not in proportion to their investment.
4. A cooperative is controlled by its patron members, each of whom ordinarily is allowed a single vote—not by the owners of
its capital stock, if any, in proportion to the number of shares they hold.
The chief aim of cooperative business, as contrasted with other kinds of business, is to provide goods and services to its members at cost. A cooperative does not engage in buying and selling in order to make a profit for its members. Although it may buy and sell from the general public in order to carry on its own business, this is incidental to its chief aim—serving its members. “Co-ops”—to use the familiar nickname—are private enterprises and therefore are part of our American system of private enterprise just the same as an individually owned business, a partnership, or a corporation.
How Are Cooperatives Classified?
Cooperatives can be grouped according to what they are set up to do:
- Producing Cooperatives. In these cooperatives, members, as workers, extract, raise, or make goods. Such
cooperatives may engage in mining, farming, manufacturing, or similar occupations. The self-help cooperatives
which sprang up during the depression of the 1930’s provided employment as a producing cooperatives.
- Marketing Cooperatives. These are cooperatives which undertake to market crops or other products of members. Often these associations, as a necessary part of their job, prepare products for the user. For instance, they churn butter, manufacture cheese, can fruits and vegetables, and so on.
- Purchasing Cooperatives. These cooperatives procure goods and services needed by members whether for consumption or production. Those that serve farmers are called “farm supply” associations. They may provide farmers with goods or services that they need in farm production or as consumers. Associations providing consumers with groceries, clothing, or other goods or services for general consumption are properly called “consumers’ cooperatives.” As a matter of fact, all types of purchasing cooperatives are often called “consumers’ cooperatives,” since these associations are organized by those who consume goods either as producers or consumers. Purchasing cooperatives often do manufacturing or processing incidental to their purchasing job.
- Servicing Cooperatives. Such cooperatives provide technical or professional service to their members. They may provide members with insurance, financial assistance, electrical power, hospitalization, or other needs.
Some cooperatives perform more than one kind of job at a time. For example, inane do both marketing and purchasing, or provide other services in addition to their plain activity. Most cooperatives, however, can be conveniently fitted into one of the four pigeonholes we have described—producing, marketing, purchasing, and servicing.
Tri-Town Chamber of Commerce (TTCC) of Boonton, Boonton Township and Mountain Lakes, PO Box 496, Boonton, NJ 07005
www.tritownchamber.com - www.facebook.com/tritowncofc/ - [email protected]