MainStreet Cooperative Group
cuts members costs

MainStreet flexes
buying muscle to
cut member costs

MainStreet Cooperative Group is reaching critical mass since spinning off from its parent organization in late 2001. The group now has 13 affiliate members, most of which are cooperatives themselves, that comprise more than 1,600 members, nearly 2,000 locations, and aggregate sales topping $7 billion.

“That’s a lot of buying power for members that once went it alone, often against big-box retailers who beat them on price every time,” says Don Collyard, vice president and co-founder of the White Bear Lake outfit.

He and his partners formed MainStreet as a spin-off from Cooperative Solutions, which itself started in the mid-1990s to give muscle to drywall wholesalers. They couldn’t buy drywall at a decent price because of giant competitors. “The magic of this has been that within four to five years the group has grown to the extent that now they, AMEROC, purchase more drywall than Lowe’s and Home Depot combined,” Collyard says. A co-op for independent bike retailers followed, as did others.

When Cooperative Solutions decided not to form any new co-ops, Collyard and partners started MainStreet to take on that mission, as well as to purchase at a discount ancillary products such as office supplies for member companies.

MainStreet shares in the rebates that are processed through it, and each affiliate pays a fee of $100 per member, which will likely be capped. According to the National Cooperative Business Association in Washington, D.C., there are approximately 175 to 200 small-business purchasing cooperatives.

“We felt strongly that it’s a growing opportunity,” Collyard says. “Small businesses every day are being faced with numerous challenges to survive. These are great little businesses that alone find themselves in a very, very competitive marketplace without having the resources to compete.”

Don Collyard, MainStreet Cooperative Group: 651.407.0323; dcollyard@mainstreetcg.com