Sales Boom For Members Of Online Co-Op Food

Sales Boom For Members Of Online Co-Op Food 30-6-7 When Bob Waldrop started buying feed direct from farmers, he liked the idea so much he decided to get more involved. He set up a website that others could access to order direct from the same farmers. As more people accessed the system and more farmers offered products, the informal network grew until the Oklahoma Food Co-op was born. "We had 35 members in November 2003 and grossed $3,000 in sales," says Waldrop. "Today we're grossing up to $25,000 each month and have 834 members. We only sell food and other items produced in Oklahoma." What is most unique about the co-op is that this is no neighborhood venture. It's a statewide effort but there's no building. Members place orders online, by phone, by mail or by email each week, and producers deliver products packaged by order to a central location in Oklahoma City. Volunteers sort products by member order, and batches of orders are delivered by volunteers to 16 locations around the state where local members pick up their orders. If members are ill or disabled, orders are delivered to the home for free; otherwise there is a home delivery charge. From the few homegrown foods and producers Waldrop discovered, the co-op now lists more than 1,200 products from nearly 80 producers. Products include everything from beef, pork and cheese to goat's milk soap, creams and detergents to barbecue sauce, wood works and clothing. The key to its success is a very efficient software package that has a database for producers and product listings. It even has inventory control, so if a producer lists 10 items for sale, once 10 are sold, no more orders can be placed for the product. The software also produces invoices for both customer and producer. One decision the Oklahoma Food Co-op made early was to self-finance, and Waldrop says money has never been a problem. Each member pays a one-time $50 fee. In addition, the co-op charges producers 5 percent and members 5 percent on each transaction. "We didn't apply for grants, as they required administration time, and that is our scarcest resource," says Waldrop, who works full time as the director of music at a local church. "By self financing, we are under our own control." The co-op board of directors, with Waldrop as president, is considering setting up a storefront operation. To do so, he estimates they will need at least twice their current monthly sales. If they do it, it will no doubt be like their existing business, invented from scratch. Waldrop says the co-op is happy to work with groups in other states wishing to set up a similar online system. They've already done so in Nebraska and Texas. After all, he notes, the software has already been developed. "It's always easy to find consumers," he says. "Organizers need to buy local to find out what's available and what's good. The second step is to start a website. Third is to set up an organizational committee of producers and customers." Contact: FARM SHOW Followup, Oklahoma Food Cooperative, 1524 NW 21st, Oklahoma City, Okla. 73106 (ph 405 613-4688; customer@oklahomafood.coop; www.oklahomafood.coop).

To read the rest of this story, download this issue below or click here to register with your account number.