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What is the difference between retail, wholesale and member prices?


The retail prices (as shown in the public product sales area) are the prices that the co-op sells to the general public in small quantities. Wholesale prices are those prices given to volume buyers, that is, anyone in the general public purchasing more than $500 worth of co-op products at one time. Member prices are those shown on the member price list in the Member’s Only section of the web site. The general public and members alike pay 10% for shipping.


Can a member buy products at member prices and then resell them on his web site or at his ranch or at shows?


Yes, please! Members are encouraged to purchase co-op products to resell. For our members as well as for our wholesale customers that have retail outlets, our Retail Prices are suggested only. The co-op has costs and a profit margin built into the wholesale/member prices. The co-op sells product at Retail Prices at shows and events where it has a booth to cover those extra expenses.


How does the co-op arrive at its prices?


Whether you are selling apples at a fruit stand or real estate, it takes research to come up with your asking price. The cost of production gives you a floor, while the price that a “willing buyer” will pay is your ceiling on prices. Pricing is an art – not a science. Co-op product lines may have different mark-ups (the difference between production cost and wholesale/member price). The co-op is continually working to refine its understanding of production and other hidden costs as well as monitoring overhead to maximize profit while maintaining product flow.The prices approved by the Board of Directors before they are official.


Will the Co-op accept credit cards, especially at shows?


Presently the co-op accepts PayPal only for online orders but Paypal accepts your credit card.


How are volunteer labor hours counted and tracked?


Right now a labor hour is equivalent to two pounds of llama fiber **. The co-op had given labor credit to members who have worked at fiber sorts, fiber packing events, and helped to move fiber from one storage area to another. It is very important that members sign in/out on the Volunteer Hours Time Sheet at the event or sort. This time sheet must be turned in to the committee in charge of the event or to the Treasurer for the member to get credit for the hours worked. The time sheet is eventually kept as an historical record.


Where are my dividends?


Your dividends or profit sharing is called patronage and, when it is paid, you will receive a 1099-PATR form reporting it to the IRS. According to the fiber co-op bylaws, the Board of Directors (BOD) did not have to consider paying patronage for the first five years of the co-op’s existence. Patronage was first considered by the BOD as per the bylaws at the end of fiscal year 2010 (which just ended November 2011). The bylaws also state that patronage will only be paid after a sufficient operating fund has been established. At present, the co-op is building up its checking and savings accounts so products can be kept in inventory without any presales or loans. At the end of each year, when the BOD receives the final treasurer’s report, the possibility of patronage payment will be reviewed.


Last updated: November 12, 2021

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