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Framework 7 of 14

Organize · Framework 7 of 14 · 3 min read

The sharing rule

When we sell together, who gets what?

بالعربيةعندما يبيع الأعضاء معاً: كيف يُوزَّع المال بالترتيب، في الجمعية وفي التعاونية.

When to use it

Before the first joint sale, for each product and each channel.

The framework

Shared money is split in this order:

  1. The producer first: an agreed price per kilo, by quality grade.
  2. Shared fixed costs (design, the coordinator, registration): split equally, or by each member's volume.
  3. Variable costs (packaging, transport): by quantity.
  4. What's left: by contribution, not by influence. Weigh it: who supplied how much? Who sold? Who carried a role and gave time?

Legal form: an association doesn't distribute profit; it provides its services at cost. A cooperative distributes its surplus to members according to how much each one dealt with it. Build the rule around your form, and check it with someone qualified.

Questions the rule must answer:

  • For which product, and in which channel?
  • What price is paid to the producer, by which quality grade, and when?
  • How are fixed costs split, and how are variable costs split?
  • What happens to what's left?
  • Who carries returned or spoiled goods?
  • When do we review the rule?
What you walk away with

One page per product, signed by the members taking part.

For the independent producer

The same principle with partners, family and shops: who pays what, and who gets what, in writing.