Saturday, March 9, 2013

Co-Ops: A Primer

If you’ve been following along at home, you may have noticed the launch of our newest feature, the Co-Op Tracker. You may have also noticed some pretty good prices on some pretty nice hardware, and wondered how you can get deals like that.


frogtowndeals-group-funding-2First, a quick definition of a co-op.  A co-op,  cooperative buy, or group buy, is when a group of end users gets together to buy from a vendor or manufacturer in bulk.  The volume can lead to very deep discounts, often rivaling or even equaling wholesale prices.  While there is some extra overhead in the form of fees incurred by the co-op manager, and often overseas shipping, the end result will nearly always be a cost to you much, much lower than what you’d pay from a retail vendor if you were only buying for yourself.


In most cases, it is not difficult to get involved in co-ops. For all of the groups we currently track, you’ll first need an account at the site where the co-op group is hosted (as of right now, those sites include ECF, nu-vapor, and Facebook). There may also be other verification steps required. For example, ECF requires you complete a validation process before you can join the areas of the site where co-ops are hosted, and the co-op groups on Facebook are closed, meaning you can request access, but will need to wait for an admin’s approval before you can join.


Once you’re in, you can start shopping. We can’t guarantee that every item available will be listed on our tracker, but we will make every attempt to keep it complete and up-to-date.  However, it’s always a good idea to read through the threads to see if there’s anything we missed.


Once you’ve found an item you’re interested in, look for a sign-up sheet. Most co-ops will have a form, most often hosted at Google docs, where you can indicate your interest in the items being bought, and order some quantity of them.  After you have done that, be sure to monitor the thread related to the co-op for news and updates.


At some point you will be required to pay for you items, generally before they are ordered from the vendor or manufacturer.  The most common payment methods are PayPal, Popmoney, and sometimes Dwolla, though some co-ops may require other forms of payment, such as a money order.  The co-op manager will decide the payment methods available and will communicate them to the group.


waitOnce you’ve paid, be prepared to wait. As most co-ops involve ordering from overseas, it can often be a slow process getting the goods stateside, and then the need to be repackaged for the individual buyers, and shipped back out.  For many co-ops, this waiting period can be a few weeks to a month or more. Eventually, however, you will receive your order and have your new toys.


A word of warning: Co-ops are not a safe way to buy. All kinds of things can go wrong. Do not expect warranties, or replacements from the vendor if your item does not work when it arrives. Your items may not be the quality you expected when you ordered, and if that happens, you will not be able to return them. On extremely rare occasions, a co-op manager may just abscond with the payments without placing an order. We’d like to stress again that this type of thing is very rare, but it has happened before and will certainly happen again. Do not ever invest more into a co-op than you can afford to lose.


Also, co-op managers generally aren’t making any money out of the deal. They’re simply acting as the front man for the group, negotiating prices, placing the order, and shipping to the individual members. Running the co-op is not the manager’s day job, so treat him or her with the kind of respect due to a person who is doing you a favor with nothing expected in return.  Here are a few things you can do to help out your co-op manager:


  • When signing up for a co-op, check and double-check before submitting your order, shipping and contact information that everything is correct.  If it is not, you risk being ejected from the co-op as the manager may have no way to contact you.

  • If you have questions, you should feel free to ask them, but do not hound the co-op manager.  Read the threads for the items you are interested before asking questions: nobody likes having to answer the same questions over and over.

  • Have an account set up with the chosen payment provider before payment is due, to avoid waiting for validation and other delays.

  • Keep informed about the co-op’s progress so you know when to pay, or if available items, schedules, or other aspects of the co-op change.  Changes mid-stream are common.

  • When the time comes, pay promptly. For most co-ops, orders are not placed until everyone has paid. Do not be the person who everyone else has to wait for.

Co-ops can be a lot of fun, and if there’s one thing better than receiving vape mail, it’s receiving vape mail that you got dirt cheap.  If you’re willing to take the risk, and can play by the rules, co-ops can be a very rewarding way of getting your gear.


 



Co-Ops: A Primer

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