Newsletters: November-December 2009
General Manager’s Report
Natural Times November/December 2009
By Larrane Hartridge
It’s really hard to believe that a year has passed since we completed our expansion. Here we are in the holiday season once again busier than ever. The Co-op is continuing to grow—our ownership and sales remain strong. As noted in our last newsletter, our Board of Directors (BOD) authorized $50,541.40 to be returned to owners who purchased goods during our last fiscal year (June 29, 2008-June 27, 2009). We will be issuing our patronage rebate checks soon and I want to clarify what patronage rebates are, and how they are calculated.
The explanation below is to help alleviate any confusion regarding New Leaf Market’s Patronage Rebate by showing how it is determined and processed.
- At the end of the fiscal year, New Leaf Market determines the Total Sales for the year using the point of sale system, or registers.
- The Total Sales number is then broken down by the Sales generated by Owners and Non-Owners.
- The Profit for the same fiscal year is determined with the help of New Leaf Market’s CPA and IT and Finance departments.
- Once the Profit Generated by Owners is determined, New Leaf Market’s BOD determines what percentage of the Owner Profit will be returned as Patronage Rebates.
- To calculate each Owner’s Rebate, the individual Owner’s Total Patronage (sales) is divided by the total Owner Sales to determine that individual Owner’s Percentage Contribution to the overall Owner Sales of the store.
- This percentage is then multiplied by the allotted BOD approved return to calculate the Owner’s Patronage Rebate.
- We then prepare the checks in-house and deliver checks greater than $1.99 to a local mail processor to be stuffed in envelopes and mailed out to the ownership! By law, we are required to have the checks mailed by January 15, 2010.
Example:
| Total Sales | $10 million |
| Owner Sales | $5 million |
| Total Profit | $200,000 |
| Owner Profit | $100,000 |
| BOD Approved Rebate Amount | $50,000 |
| Jane Doe’s Sales | $2,000 |
| Jane Doe’s % Contribution | 0.04% |
| Jane Doe’s Rebate Check | $20 |
