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Show Wholesale buying clubs can be a bargain by Carol L. Clark Utah consumer education specialist Warehouse buying clubs can be a great bargain, especially if you like to buy food items and commodities in bulk. But there are some things to watch out for when you are considering joining. Each company differs, but typically a buying club will charge a minimal amount for a company or an individual in-dividual to join. Weigh your fee against the potential use of the club. You might not save enough to make joining join-ing worthwhile. -I Who is selling you the 1 membership? In past cases, individuals have recruited others in their neighborhood to join a buying club. The recruiters received a com-jriission com-jriission for each person who joined. If someone is soliciting your business to join a buying club, it's wise to ask how much commission com-mission they are getting for the sale. If the recruiter is earning good money, he might not be looking out for your best interests as much as he is looking out tor nis own commission. Read some literature about the club before you sign a contract of any kind. Fortunately, as buying clubs ir.crease, particularly along the Wasatch Front, there are several options available, and comparison shopping is possible. At large warehouse buying clubs, during your first visit they give you a card which allows you to shop at their discounted price one time only. You can then make a decision is you'd like to join the club by actually looking at the prices available. Several new chains have come into Utah. They will allow individuals belonging to specific credit unions or employees of particular organizations, to join at no cost. Small businesses must pay to become members. Membership is limited because warehouse buying clubs operate on a very low profit margin per item. Bad checks cut into their profit measurably, so to keep their everyday prices low, they have limited membership to individuals who belong to groups which have a history of outstanding individual credit ratings. At least one of these warehouse groups feels so strongly about keeping prices down that they will cancel your mem-bersip mem-bersip after one bad check. As an individual member, you'll pay 5 percent on top of the marked price of the merchandise. mer-chandise. Businesses pay wholesale cost. Figure that percentage into your cost when you aie considering the advantages of a buying club. You'll likely find that on some items you can save, while on others you could do as well at various discount or variety stores. These new warehouse buying clubs specialize in name brand merchandise in industrial size packaging. Tires, china, clothing, appliances ap-pliances and high tech equipment may also be sold. I Don't be shy about asking questions of the employees about the buying club's services, ser-vices, accessibility, and hours. As I have looked around at buying clubs, I have found employees to be helpful and anxious to be sure I was satisfied with the services the offered. When you're asking questions, be sure and check about the warranty and refund policies. This is important for several reasons. For example, since buying clubs sometimes sell clothing but have no dressing rooms, you won't be able to try on clothing so you may have to return it. I'm excited about buying clubs coming to Utah. Consumer Con-sumer groups have long united to save money through volume sales. The concept is past due in this state, and consumers will profit from warehouse buying clubs. If you have comments or experiences you'd like to share, write me at the Attorney Attor-ney General's Office, 236 State Capitol, Salt Lake City, Utah 84114. Remember, your knowledge know-ledge is the best consumer protection. 1 |