I discovered co-ops accidentally. In my very, very broke college days, I made it through by house-sitting for professors as they went on leave to teach abroad. For 18 months I lived rent-free caring for houses in much nicer neighborhoods than the student housing. One of these places happened to be across the street from a food co-op.

Image Credit: Freedigitalphotos.net
Having just a laundry basket and a bicycle to my name, this appeared to be my only realistic option to for grocery shopping. There was a positively crushing membership fee of $35 annually, which I didn’t pay because I didn’t have that much cash. Instead I opted to accept the prices a few cents higher on each purchase.
Generally, my purchases there were limited to a tiny amount of chicken every other week, corn tortillas, cheddar cheese, jalapenos, potatoes and onions.
The house I was caring for had a good tomato garden and some herbs. From this I could make tasty quesadillas and salsa for next-to-nothing and rice for breakfast and lunch. (My food budget was $50 a month in the summer of 2000).
Co-ops pool resources and buy in bulk sharing the savings with the membership. There are some famous co-ops that you might not even realize exist (REI is a co-op).
Now I rely on more informal co-ops. A friend organizes a co-op with the mail order food company Azure. I haven’t participated yet but I’m working on my list and price comparison sheets to determine my order for winter. I could buy 10 pounds of oats and use them, but I think the bag size is 25. I could use ¼ pound of cinnamon, but not 1 pound, so it’s a little hard to develop a list.
This friend has several people that put in the orders together and then the food is all delivered by tractor-trailer to a central location—where everyone comes to pick up their orders. Some things will definitely be going on this list—like peanut butter, flour, some spices, but other things are going to need more careful consideration (how much butter do I want to freeze in the name of a good deal?). A co-op can be formed in an organized way via a membership club, but even splitting a jumbo box of diapers from Costco with a pal can save you some serious dollars down the road.
This post is part of a series I’ve entitled “Frugal August” and is inspired by (though not copied from) the book The Complete Tightwad Gazette
by Amy Dacyczyn. My tips are meant to build on hers, but generally are not duplications.