Buyer cooperatives

Definition

A buyer cooperative is a business organization owned and operated by a group of individuals for their mutual benefit, primarily focused on purchasing goods or services at lower prices through collective bargaining power. These entities pool resources to gain advantages typically available only to large entities in terms of pricing, selection, and influence.

Related terms

Collective Bargaining:

The process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.

Economies of Scale:

The cost advantage achieved when production becomes efficient, as costs can be spread over a larger amount of goods reducing the price per unit.

Wholesale Purchasing: Buying goods in large quantities directly from manufacturers or distributors at discounted rates for resale or business use