Could this work ?

[cbc58]

Could this work ?       (This is an idea I've been kicking around for 10 or so years...)

Start a "consumer buying group" that has state and local chapters.  Membership is free to all consumers.
Businesses pay a modest ad fee to join and be listed in a local directory, plus they must offer some form of discount to members.  A key ingredient in this is "local chapters" with a "local" flavor. 

There is all tied together nationally to get savings from national chains and for major items/services such as insurance, gasoline, financial, legal, food, etc.   As membership grows so do savings and variety.

Here is where it gets interesting:  if enough consumers join then the buying group can go out and buy companies that serve certain sectors (i.e. insurance, financial, etc,) and operate them on a low profit margin basis... passing savings onto members... kind of like a credit union.

If there was something like this in your area... would you participate?  Is there something like this out there that you are aware of?  do you see any potential problems or pitfalls?

The big issue I see is getting local people to setup and manage chapters... and if you have any ideas on that please let me know.  My concept is to have them keep most of the ad fees for vendors in their area in return for setting up and managing the chapter.

[ScottA]

It sounds like a good idea but human nature being what it is someone would find a way to corrupt it. In the end I doubt anyone would end up saving much money and it would turn into an advertising network of some kind. I hate to sound negative but from experience this would be my predicted outcome.

[cbc58]

hmmm... i hadn't thought about it getting corrupted but I guess that could happen if it got huge. 

I think there will be constant pressure on consumers to save money in any way they can... even if it's getting a coupon for a local restaurant or a discount on furnace repair.  Every little bit helps.

Consumers have the power and if they band together alot can get accomplished - not only in savings but also in political reforms.

[ScottA]

Once upon a time I got the great idea to save money by buying a steer and having it butchered. A buddy of mine was suposed to buy half and me the other half. He was all for it until I picked up the meat and told him to come get his half. Suddenly he backs out. I got stuck paying for all of it and a new freezer since mine wouldn't hold it all.

[cbc58]

i think you misunderstood when I said "go out and buy" companies.  I'm not suggesting members actually  shell money out ...  it would be done through investors (some of which might be members if they wanted to invest).   But that is waaaayyyy down the road... if even ever.

if you had slaughtered that steer and been in a buying group like I'm envisioning... chances are someone else would have taken the other half...

[glenn kangiser]

The nearest thing I can think of to this that works fairly well is Costco.

[brianand]

It could work and a very similar thing has been going in the UK since 1844, although it started from one little shop in the North of England, they are very common place throughout the UK and have moved in to Insurance, Banking and all sorts..

http://www.co-operative.coop/aboutus/thecooperativemovement/

[cbc58]

Thks for the link.  that's something to shoot for I guess.   What I'm thinking of will have to start off as an advertising network/buying cooperative and then move into non-stocking distribution and then maybe something more.   Devil is in the details.