Members of food co-op to receive rebate checks

ADVERTISEMENT

More by Teya Vitu

• Classic films under the stars at Cinema La Placita
• City OKs deal for $167 million convention center...
• Plans for lots near Fourth Avenue underpass take...
• New director has high hopes for Tucson Children's...
• Mrs. Tiggy-Winkle's to open branch in Tucson...
• City Council likes progress on plan for Sheraton...
• Duo revive vacant downtown building with art...
• Tucson Origins supporters want plans for...
• Big hole downtown soon will become parking garage,...
• Initial cost estimate for downtown convention...

Submit an event »What's Happening

«

»

• Search all events
• Dining Guide
• Movie Times
• TV listings
• Online Games

Stage

'Tuna Does Vegas'

CD

New music

Music

Bellrays at Congress

Film

Outdoor movies at La Placita

DVD

Buy, rent or ignore?

Sales and Marketing
Ever-Ready Glass
Glass Sales Health Care
BENSON HOSPITAL
RESPIRATORY THERAPIST Health Care
RLM Services, Inc.
Orthopedic Assistant-CMA

• Print
• Email
• Comment
• Share
• Letter to Editor
• RSS

Members of the Food Conspiracy Co-op, 412 N. Fourth Ave., are getting rebate checks from $44,000 in profits generated by member purchases in 2008.

The co-op is sending checks ranging from $2 to $364.30 to 993 members who shopped at the co-op between Oct. 1, 2007 and Sept. 30, 2008. The checks equal 4.5 percent of a member's spending in that time frame, said Torey Ligon, Food Conspiracy's outreach coordinator.

"We were prepared for a 1 percent rebate," Ligon said. "We were able to give back 4.5 percent. It's the first time that we've paid out patronage rebates in our history."

Food Conspiracy started the profit rebate program in 2006, when members voted to shift away from giving a 5 percent discount to members at the cash register.

"With the discounts, you were giving it away before you even knew you made a profit," Ligon said.

Food Conspiracy sales totals had tumbled from a 1998 high of $2.9 million to $2.18 million in 2005.

"After 1998, we saw sales drop significantly each year to the point we thought we were going to go out of business," Ligon said. "That's why we changed to patron rebates."

Food Conspiracy notched an overall $126,000 gross profit in 2008. After taxes and patron rebates are deducted, the remainder goes into the co-op's business expansion fund, Ligon said.

Shoppers pay $180 to become members, who are the co-op's owners. Rebate checks exceeding $180 mean those members earned back more than their investment.

Ligon said the $2.73 million sales totals in 2008 was Food Conspiracy's second best year behind its peak performance in 1998. The co-op was formed in 1971.

"Organic food and a healthy diet continue to increase in popularity," Ligon said.

She added that devoted Food Conspiracy members are not letting the recession keep them from the local and organic food grocery.

"Once people adopt a healthy habit with food, they are more likely to sacrifice entertainment before food habits," she said.

Read All Comments » 3 TOTAL COMMENTS

bugmenot

Mar 6, 2009 @ 5:34pm

That rebate check was an unexpected surprise for me!

Outreach

Feb 16, 2009 @ 12:10pm

In response to the previous comment, the $180 is NOT a yearly fee. The Co-op's Board (with member approval) sets the equity amount and members pay that amount when they join (or through a two year payment plan). If the members approve an equity increase, members may be asked to pay additional equity, but increases do not happen every year. In fact, equity has only increased three times since 1971. And, all equity is fully refundable if a member resigns. A member could resign the day after they join or 25 years later and they still get all their equity back as long as the business is still in good financial shape.

5022

Feb 16, 2009 @ 10:24am

Is that a yearly or one time fee? Must be yearly, to receive that much back, or more.

Never been there, but to each his own.

Post a Comment »