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Ham Radio Sales Co op

Discussion in 'Ham Radio Discussions' started by KE5FAQ, Sep 10, 2017.

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  1. KE5FAQ

    KE5FAQ Ham Member QRZ Page

    I was raised on a farm. I do a lot of swapping and trading.
    I have been thinking.
    the farmers in my area formed a co op.
    they are dues paying members. like sams except they own it.
    the founding members get products at about a 5 to 10 % margin
    the members who did not found it buy items at a discount but not at almost cost.
    At the end of the year the profit is distributed between the members.

    I have thought of forming an LLC
    And Forming a club like this
    only allowing members to buy at 10 % +shipping over cost.
    with no end of year rebate.
    I am looking for interest feed back at this time.
    I worked for a large Retail company for 20 years in Upper management
    I currently run an internet business for a living for the last 5 years
    I have told people this to understand I have the background to do this.
    ok send me the
    Good Bad And Ugly on your thought of this
  2. W7UUU

    W7UUU QRZ Lifetime Member #133 Life Member Platinum Subscriber QRZ Page

    Hey - give it a whirl and see what happens. If you can establish dealer agreements with all the manufacturers, they won't care - they get "dealer cost" which as far as they are concerned is all they're after, as long as you meet whatever their requirements are to be a "dealer" (resale cert in place, trade references, good credit for 30-day terms, can meet the monthly/quarterly/annual sales commitments, etc.)

    Don't expect the manufacturer to offer any special wholesale discounts - you're no different than any other dealer, despite being a co-op. They have their quotas and minimums that must be met, and you must meet their terms...

    But outside of all that, set up and give it a go.

    All you can lose is money :rolleyes:


    [I'm a professional sales rep in Pro AV - I work with folks like you all the time, just not in ham radio but rather in Pro AV stuff]
    N7ANN likes this.
  3. W0AAT

    W0AAT XML Subscriber QRZ Page

    from what I have heard 5-10% is the profit margin on new radio sales...
    WA7PRC likes this.
  4. W7UUU

    W7UUU QRZ Lifetime Member #133 Life Member Platinum Subscriber QRZ Page

    On a good day, with a strong economy, the sun shining, a giant box of Krispy Creams, and a showroom full of customers :)

    N7ANN, N3AB, KU4X and 1 other person like this.
  5. K6LPM

    K6LPM XML Subscriber QRZ Page

    Marketplace is too small a niche and doubt you could attract enough dues paying members to give you a big enough "group buy" purchasing power to obtain wholesale licensing rights or effect a large enough discount to offset the annual dues... The amateur radio retail market is very small and fairly competitive already. It wouldnt surprise me if the markup on a major brand big ticket item isnt much greater than 10% over cost. If you notice, almost all major and authorized retailers have simililar advertised listed pricing or "call for price" ... which I see as a clue that the dealer is locked in with manufacturer to an agreed upon minimum advertised low price.... (just my own assumption fwiw) .
    Thats just my hunch?
    Also,,, why the heck not share the wealth and offer the same dividend or rebate? Sounds as if you want to subsidize your own for profit amateur radio sales business under the guise of a co-op or wholesale purchasing club.
    You may need to investigate incorporation rules and other trade and exchange type of legalities and best practices .
    Not trying to be a downer but just my worst case immediate thoughts. My first reaction as joe blow consumer would be whats the catch, gimmick and where is the fine print?
  6. WA7PRC

    WA7PRC Ham Member QRZ Page

    That was my experience when I worked in retail ham radio & electronic parts (NOT Radio Shack). Margins on big ticket items were slim. When I left, the big three were starting to squeeze harder by insisting on case lots of certain rigs.
  7. K6LPM

    K6LPM XML Subscriber QRZ Page

    Yes, if only everyone just wanted a 7300 .... then ya might just be in biz.
  8. W7UUU

    W7UUU QRZ Lifetime Member #133 Life Member Platinum Subscriber QRZ Page

    Retail margins on a 7300 I'd be surprised if were 10%. Most likely about 3-5% tops

    N7ANN, WG7X and WA7PRC like this.
  9. KK5JY

    KK5JY Ham Member QRZ Page

    Do people buy radios and gear often enough to be willing to buy-in to a co-op? What you are talking about sounds sort of like Ham Radio Prime, so to speak. That's fine if you swipe the card every month, but if you only buy major items once every year or two (or ten), then does it pay to pony up co-op dues every year?
  10. W0IS

    W0IS Ham Member QRZ Page

    I suspect there's another reason for the "call for price" ads. (And this is also just my assumption.)

    If Retailer #1 runs a large ad showing prices, then this opens the door for Retailer #2 to run a small ad saying "we match all advertised prices." Retailer #1's ad says that the new Yaecomwood is $999. So what does the buyer do when they see this ad? They call Retailer #2, and the buyer is told that it's their lucky day, since Retailer #2 (after consulting Retailer #1's ad) tells them that the price is only $989. So Retailer #2 gets the sale, and they even make more money on the deal, since they only had to pay for a small ad without all of the prices.

    The buyer might even be paying more, because Retailer #1 might have lowered the price to $979, but the ad went to press a month ago.

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