Howard Brodsky set out to conquer the carpet world. Dan Bleier just wanted to save his family-owned business. But both cherished their independent status in a retail chain, "big box" business world. Now, each realizes success through a purchasing cooperative.
The pair spent almost eight months reviewing different business models, disqualifying one after another; then they looked at cooperatives. Brodsky and Bleier are founders of two of the estimated 300 purchasing cooperatives in the United States—a sector which serves roughly 50,000 independent business owner-members.
"The co-op was the ultimate choice to bring (buying) scale to local ownership while honoring their differences and valuing their independence. It also allowed us to leverage our efforts to serve their best interests," said Brodsky, now chairman and co-CEO of CCA Global Partners. "By comparison, other business structures didn't endure."
Entrepreneurs across the American business landscape—from furniture dealers to funeral service providers—are using co-op power to level the playing field between family-owned enterprises and mega-retailers. Learning from their experiences can provide powerful incentive for other retailers to explore the benefits of participating in a purchasing co-op.
Purchasing co-op owner-members can significantly increase the competitiveness of their independently owned businesses. By pooling their buying power to acquire inventory and services, they lower operating costs, better respond to competition and improve their businesses' overall performance.
Conquering the World
By virtually every business standard, CCA has more than endured—it has exploded. Starting with 13 members, the cooperative has grown to 650 owners who operate 3,600 independent stores around the world. The company reported sales exceeding $10 billion last year and has never experienced an unprofitable quarter in its 24 years of existence. In fact, sales have jumped 325 percent in the past eight years.
"If you give a smart entrepreneur the best tools, he can outplay the big guys,” Brodsky said. “He needs to buy better, brand better, have the best training, best hiring and best marketing.” Today's CCA members engage in the flooring, mortgage banking, lighting and bicycling industries. Considered together, CCA's flooring affiliates represent the largest group of retailers in the world.