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July 2007

News & Media

Convenience Store Owners Join to Form Co-Op 
July 12, 2007 

PITTSBURGH – Brian Weiss, owner of four convenience stores, has formed a cooperative for convenience store owners that he hopes will help them negotiate lower prices on merchandise.

The Weiss Enterprises Retailers' Wholesale Co-operative Network is for owners of convenience stores that purchase at least $100,000 of candy, groceries and tobacco products annually. Weiss said about 15 or 16 stores are ready to join. "We would like to see every small business within a hundred mile radius of Pittsburgh" become a member.

Besides obtaining uniform discounts for members, Weiss said he hoped it would achieve the reduction or elimination of fuel charges.

"Over the past five years, we've been noticing how things have been getting really, really pricey," Weiss said to the Pittsburgh Post Gazette. "Fuel charges that used to be a couple of dollars are now $9 or $10. Because the cost of fuel is so high, the price of everything goes up."

A visit to a Sam's Club confirmed the need for the co-op when Weiss saw a certain brand of iced tea selling for 24 cans for about $11. "I'm paying right now, from a vendor, around $14.95 for a case," he said. "I'm going to end up buying it at Sam's Club."

If Weiss did, he would not be alone, said Jeff Lenard, NACS spokesman. "We have heard from retailers on occasion saying that they can get a better deal buying from one of the warehouse clubs than they can from their distributor," he said to the Pittsburgh Post Gazette.

Seventy percent of convenience stores are owned by companies or individuals who own no more than 10 stores, Lenard said. And the higher prices often charged at those stores, he said, are not because the owners are trying to make a killing on products. "The reality is they don't have the better deal" when buying, he said. "Co-op programs can help you be more competitive."