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Considerations When Joining a Business Cooperative

Cooperatives take many different forms, but one thing that is certain is their importance to communities and the world economy. “In the United States alone, there are 42,000 cooperatives which control nearly $3 trillion worth of assets.”

As an independent business, you likely spend much of your day concerned about the uphill battle of competing with big-box retailers that push convenience and low price. Fortunately, you don’t always have to suffer at the expense of large businesses that purchase in volume and can afford to reduce consumer prices.

Joining a cooperative or buying group can help you play the market, but as a business owner, it’s important to do your due diligence to avoid any downsides. Aside from Below are five items you should look for in a buying group in addition to fair cost of membership. 

Market Presence/Strong Leadership

What is the cooperatives reputation in the market? How do they stand out from competitors? Are the leaders highly regarded by other members and their vendors?  Is the cooperative leadership team informed, are they thinking critically about the organization’s needs, are they able to pivot, when necessary, to thrive in varied economic markets? Do they have a vision for the future and, equally as important, are they helping members stay engaged and motivated?

Flexibility

As an owner, you understand your business and need to be nimble. Is your cooperative willing to let you be flexible regarding your relationships with other cooperatives.  Are they large enough to help you navigate a competitive marketplace, but personal enough to respond to your individual needs?

Transparency

How transparent is the cooperative with financial information?  Are they completely accountable to member-owners and do they embrace the tenet that transparency builds trust, creates solutions, and accomplishes goals?  Are membership fees

A Robust Team

As a business owner, you recognize that staffing brings complications.  Does the cooperative have a cohesive, communicative team with a mix of skillsets in trading, development, marketing, finance, administration…?  Does the team seem to be actively listening to members? Are they quick to resolve issues with discrepancies, damages, deliveries or other situations that impact your business?

Added Value Services

Buying power is surely at the top of the list when it comes to joining a cooperative, but business have other needs. Is the cooperative enhancing your abilities deliver a competitive advantage in other ways besides price?  For instance, do they offer education and training opportunities?  Assistance with marketing? These extra incentives all contribute to your bottom line.

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Considerations When Joining a Business Cooperative

Cooperatives take many different forms, but one thing that is certain is their importance to communities and the world economy. “In the United States alone, there are 42,000 cooperatives which control nearly $3 trillion worth of assets.” As an independent business, you likely spend much of your day concerned about the uphill battle of competing

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Joe Burlison

Joe Burlison is the Vice President of Southwest Operations for LBM Advantage. Burlison has a rich history in the lumber and building industry. Upon graduating with a Bachelor of Administration from Baylor University, he began his career as an Assistant Manager at a lumber and hardware chain. His desire for professional growth led him to a position at building materials manufacturer Louisiana Pacific, where he successfully managed mill sales and a distribution yard in Houston, TX. A period in the lumber hedge program at a major energy company provided him with a solid knowledge of lumber futures that later propelled him into a twenty-year career as a Southwest U.S. Regional Territory Manager for a large lumber and building cooperative. Joe has been a major force in member acquisition and development of large lumber dealers. His lifetime of experience in the south-central and Texas markets and his deep understanding of independent lumberyards and home centers are instrumental to LBM Advantage’s Southwest and Westward expansion efforts.

Making an Appointment

To make an appointment click the blue button on the “My Event” page of the virtual attendee hub.

Click Create Appointment at the Top Left Corner

Under Appointment Type Click Event Appointment

To Add Attendees you can scroll through the list or type in the search bar. Once you have clicked the attendees that you would like to invite to the meeting make sure to click the blue button at the button left of the screen

Then pick your time, add in a subject and description of the meeting and Send the appointment invitation by clicking the blue button at the bottom left corner of the screen.

**TIP** Make sure “Attendees can join this appointment virtually” is clicked. This is how the zoom link will generate in the invite

Once you’ve sent the meeting request, the recipient will receive an email like this. To accept or deny the meeting the recipient will be brought back to the virtual attendee hub solidify their decision.

After the appointment has been approved a zoom link will generate and you can add the meeting to your calendar. Zoom phone numbers are not provided as the system will not generate them, so you will need to use an alternate route in this situation.

I would still schedule the appointment and in the description of the meeting inform all attendees that you will be calling them or using an alternative approach.

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    Covid-19 Response

    June 25, 2020 – Update

    The impact of COVID-19 continues to be felt by individuals and communities around the country. We hope our industry partners are faring well. In accordance with state and local requirements, Advantage has taken steps to protect the safety of its employees. 

    Currently no more than 40% of staff is working in our offices at one time, with the rest working remotely. Additionally, if outside visits are necessary, they will be scheduled by appointment only.

    General employee business travel has been suspended, but limited essential travel is permitted for our Member Sales team.

    There continues to be no disruption to daily business activity, and communication to traders and support staff remains seamless. We will continue to post updates as this situation continues to evolve.

    Kellianne Lundgren

    Kellianne began her career in Human Resources in 2008 working for a large healthcare system in both Recruiter and Employee Relations roles. In 2013, Kellianne joined ENAP as HR Manager when the organization had only two offices and 65 employees. She is the sole HR practitioner for LBM Advantage and oversees all aspects of Human Resources, including recruitment, employee relations, performance management, benefits and leave administration, compensation planning and compliance. She was promoted to Director of Human Resources in 2020. Kellianne attended Mount Saint Mary College where she attained both her Bachelor’s Degree in Business and her MBA. She has also achieved multiple credentials demonstrating her commitment to the Human Resources profession. She received her PHR certification in 2011 and her SHRM-CP in 2015.

    Tim Johnson

    Tim Johnson is the Vice President of Forest Products and works from LBM Advantage’s North Carolina office. His entire career has been devoted to various aspects of the building supply industry, beginning in 1991 with Front Royal Environmental Services. As the company’s N.C. Licensed General Contractor, Tim managed the field operations for construction projects, ensuring their completion in accordance with state and federal regulations while maintaining established budgetary guidelines. In 1997 Tim joined Moore-Handley and was tasked with developing the Eastern NC territory for the wholesale distribution, sales and management of products to hardware and building supply retailers, successfully tripling the territory’s sales.

    Tim was most recently with IBSA, a cooperative buying group of independent lumber and building materials retailers concentrated in the Southeastern part of the country. He began at IBSA in 2003 in the Building Products Sales Department and held various positions including Assistant Manager, Director of Dealer Relations, Vice President of Business Development and in 2011 became President and CEO overseeing all aspects of daily operations. Tim and his team successfully lead the group through the 2017 merger with LBM Advantage.

    Bob Carson

    Bob Carson is Vice President, Southern Operations. Carson is considered a veteran of the lumber and building materials industry, having worked in it for over 39 years. He began his career in 1974 at Howard’s Home Care Center as a buyer. Shortly after, he was hired by Allied Building Stores Inc. (ABS) as Merchandising Manager. Carson had a successful career at ABS where he held several progressive positions such as: Vice President Building Material Development, Vice President Operations, Executive Vice President and Vice President of Strategic Planning. In 2009, he opened his own lumber wholesale company. Carson joined ENAP as Vice President in January 2012, while their new office was opening in Monroe, Louisiana, to help establish growth in the Southern territory. He currently oversees LBM Avantage’s Monroe office and development in the region. Carson received a bachelor’s degree in Business Management from University of Louisiana at Monroe.

    Glenn Canino

    Glenn Canino is Director of LBM Advantage’s Building Products Division. He facilitates daily operational and sales function among LBM Advantage’s four regional offices, as well as helping to spearhead the company’s overall growth initiatives. Canino has over thirty years of industry experience with a multi-faceted background that includes home construction, corporate finance and sales. He has been with LBM Advantage since 2003, initially working in the Hardlines/Specialties Department, then overseeing the Kitchen and Bath department. Canino became manager of the Millwork group in 2009 and then Director of Building Products in 2018. Canino holds a bachelor’s degree in Business Administration, focused in Finance with concentrations in Financial Analysis and Real Estate from California State University, Fullerton.

    Dave DeJoy

    Dave DeJoy, LBM Advantage’s Chief Financial Officer began his career in 1990 working in the accounting department for IBM Asia Pacific in Westchester County, NY. Over the next three decades, he held various roles within IBM in accounting, finance, sales operations, marketing, and human resources, with the majority of his career in sales operations supporting the IBM software sales teams. Most recently, Dave was Director of Sales Operations for IBM’s Worldwide Cloud and Cognitive Software division. Dave is instrumental in providing headlights into business success through pipeline metrics, forecasting and, resource planning on a global level. He received his bachelor’s degree in Finance and Managerial Accounting from Pace University and his MBA in Finance from Fordham University.

    Tom Molloy

    Tom Molloy is Executive Vice President of Products & Programs for LBM Advantage. With over 30 years of experience in the lumber and building materials cooperative industry, Molloy is a highly regarded and seasoned veteran. He has superior knowledge of all areas within a buying group cooperative, including retail needs, supplier needs, sales and marketing. Molloy’s career began at ENAP in 1983 where he worked for 14 years in the Building Materials Division as Vice President/Manager of Building Products and Vice President of Sales. Molloy left ENAP in 1997 to work for Do-It-Best Corporation as a Division Manager, Pro Sales-Lumber and Building Products. Nine years later, he left Do-It-Best Corporation to return to his roots at ENAP Inc. Currently, Molloy oversees all aspects of LBM Advantage’s Building Products Division. Molloy received a bachelor’s degree in Business Administration/Marketing from the State University of New York, College at Oswego.

    Stephen Sallah

    Stephen J. Sallah is President & CEO of LBM Advantage. Sallah joined ENAP in 2008 as Chief Financial Officer and has been serving in his current role since January, 2011. Prior to ENAP, Sallah worked at IBM for sixteen years. He began at IBM as an engineer and worked in various operational roles in Poughkeepsie, NY and Burlington, VT. After spending five years in semiconductor pricing and program management, Sallah spent ten years as division controller for the Software Group in Somers, NY. His last assignment was as program manager for the IBM Software Group supporting the group general manager in Mergers and Acquisitions. Sallah began his career in the U.S. Navy. He served as a Nuclear Engineer and Submarine Officer on the USS Norfolk out of Norfolk, VA; a fast attack Los Angeles Class Submarine. He served a total of seven years of active duty and completed his service in the Naval Reserves, retiring in 2004 as a Commander. Sallah received a bachelor’s degree in Mechanical Engineering from the University of Massachusetts at Amherst and his M.B.A. from Harvard Graduate School of Business Administration.
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    Service Charge Schedule

    Advantage’s primary revenue source is derived from charging the member a percentage of the gross invoice amount based on the categories below. This service charge will appear on the transmittal unless the program is either deferred or non-adder.

    • Deferred:
      The service charge for deferred adder programs will be deducted from quarterly rebate statements and will not appear on transmittals. The service charge amount is set at 1% and a line item on the statement lists the amount being deducted. Each member has the option of declining the deferred adder and will be charged the 1% service charge on the transmittal.

    • Non-Adder:
      The service charge for these programs is not charged to the member.
    • Fixed Service Charge:
      A number of programs have a fixed service charge, regardless of the invoice amount.
    • Sliding Scale:
      If the program does not fall into the categories above, the charge will be applied per the following schedule:
    $0
    to
    		   $2,500: 3%
    $2,501
    to
    		 $40,000: 1%
            $40,001 and above is capped at $400