milegajo 595 Posted June 30, 2012 Report Share Posted June 30, 2012 I had a flash of inspiration yesterday. I intend to draft a business proposal and embark on the necessary research, but thoughts and inputs welcome, after all, the intention is that all become investors,customers,agents and shareholders in this venture. The Idea? Airgunners unite to form a co-operative business supplying all the products required. Those who invest and join will be privy to special discounted prices. No one person to profit solely. All profits to be shared as a Dividend. By Airgunners, Of Airgunners, For Airgunners. A safe storage facility for merchandise and business address will be needed. Possibly also to be the address for RFD registration. Hopefully, legislation permitting, all 'employees' can be agents of the RFD and therefore new NON FAC guns could be legally sold around the country through the postal network. Guns aside, even if the business were only to sell pellets and consumables, a vote can be had as to which pellets are most commonly used and then good discounts commanded through the combined buying power of the business and its members. Will clarify in due course on the details after calculations and research into its viability. Quote Link to post
Lewis Ste 245 Posted June 30, 2012 Report Share Posted June 30, 2012 So you want to cut out the middle man buy direct from the disproducure? so buying things at factory prices Lewis Quote Link to post
milegajo 595 Posted June 30, 2012 Author Report Share Posted June 30, 2012 So you want to cut out the middle man buy direct from the disproducure? so buying things at factory prices Lewis One possible benefit perhaps, but lets start small :-) Quote Link to post
Lewis Ste 245 Posted June 30, 2012 Report Share Posted June 30, 2012 So you want to cut out the middle man buy direct from the disproducure? so buying things at factory prices Lewis One possible benefit perhaps, but lets start small :-) Not wanting to shoot your idea down but for this to work you would have to buy in bulk to think of saving any real money but then you have got think of other things like being a public limited comple plc not a limited company so people would be able to buy in to it because if people were to put money they would want a share then I cost to set up one of them type company's and the one killer is going postage its going at least 2 quid a tin of pellets so even if we were to buy a tin of £10 at price of £8 by buying them direct or 'cheaper' I would just go down to my local gun shop who sell them because the profit margin would not be to great Just a few things Lewis Quote Link to post
milegajo 595 Posted June 30, 2012 Author Report Share Posted June 30, 2012 All valid. BUT. I may have just secured a deal with an established gunsmith who already has the accounts and RFD status. By starting small and perhaps only getting 5% back to invest in the Co-Operative we can at least see some return on money that would otherwise be lost. Its also about collaborating. If we can get together and say to a gunshop right we are 500 strong and all want air arms diablos whats your best price...we may get somewhere! Quote Link to post
Lewis Ste 245 Posted June 30, 2012 Report Share Posted June 30, 2012 I don't get the Co-Operative concept? What is it? What your saying is by buy items in bulk off a established rfd he would be willing to knock some money off? Say like a couple of people wanted a hw100 each instead off 750 brand new he would do 700 each? Or buy 50 tins of pellets that should be 10 pound and buy them at 7.50 a tin? Quote Link to post
milegajo 595 Posted June 30, 2012 Author Report Share Posted June 30, 2012 I don't get the Co-Operative concept? What is it? What your saying is by buy items in bulk off a established rfd he would be willing to knock some money off? Say like a couple of people wanted a hw100 each instead off 750 brand new he would do 700 each? Or buy 50 tins of pellets that should be 10 pound and buy them at 7.50 a tin? Co-Operative is the business structure. It means that director or shelf stacker, you should all receive an equal dividend or profit share at the end of the financial year. Over simplified explanation, but that's the fundamental idea. The bulk discount is one potential benefit. It could be direct as you describe, or indirect in the sense you pay RRP but the profit is either re-invested or distributed back to you and the other share holders as a dividend. So you get it back one way or the other. Potentially, you could buy a share, do nothing else, and if your fellow shareholders vote for the money to be distributed instead of re-invested, receive a cheque payment for £x every month/quarter/year. Quote Link to post
milegajo 595 Posted June 30, 2012 Author Report Share Posted June 30, 2012 Am in talks now with an RFD who is willing to partner up with the co-operative. Has accounts with all the major distributors. Will release more details when I have definites. Quote Link to post
Lewis Ste 245 Posted June 30, 2012 Report Share Posted June 30, 2012 Ahhhh I get you now so if I bought something of that shop full price the profits made by that sale would be spilt between all the sharholders dependant on the percentage of the company they have But I fail I see what the rfd would gain from this would he have a larger share Sorry for all the questions I'm curious about all this Lewis Quote Link to post
milegajo 595 Posted June 30, 2012 Author Report Share Posted June 30, 2012 Don't apologise, questioning is just what i need to thrash this out and cover all the bases. For the rfd its a numbers game. Higher sales shared profit margin vs high margin low sales. Often the former is better. Quote Link to post
Lewis Ste 245 Posted June 30, 2012 Report Share Posted June 30, 2012 So it would be like all of us going into partnership with him? Quote Link to post
milegajo 595 Posted June 30, 2012 Author Report Share Posted June 30, 2012 So it would be like all of us going into partnership with him? No, each other. The RFD idea would be an outside contractor. Essentially 'drop shipping'. Low profit initially for the co-operative, but potentially a gateway into the marketplace. Going to study this guide http://www.uk.coop/sites/default/files/starting-a-co-operative_0_0.pdf Lots of homework! Quote Link to post
milegajo 595 Posted June 30, 2012 Author Report Share Posted June 30, 2012 I already know a bit about Industrial and Provident Societies and that seems the way to go according to the guide. Quote Link to post
milegajo 595 Posted June 30, 2012 Author Report Share Posted June 30, 2012 As this will be everyones company, feel free to chime in with your two cents to help shape it guys! I.e what do you want it to deliver? How would you like it structured? What products should it sell? How much should shares cost? Who can buy from it? Anyone or members only? On the last note, I prefer inclusivity not exclusivity... Quote Link to post
Lewis Ste 245 Posted June 30, 2012 Report Share Posted June 30, 2012 Looks like we might be a two man team mike, another I was thinking say if we were to buy a hw100 off the rfd would it be at a cheaper price that we would then sell it for because I fail to see where we would get our profit margin to put back into the business? Or buy 20 tins of pellets between 10 people for % of rrp but still sell them to people at 100% rrp then put the profits back into the company then shared out between all of the sharholders Lewis Quote Link to post
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.