Markup Policy

Context / Problem

Since the co-op moved away from using Venmo for order payments and transitioned to an online payment processor (Stripe), we pay a fee to Stripe for every order we place.

Every time a member places an order, Stripe charges:

• 2.9% of the order amount
• Plus $0.30 for each transaction

Because of these fees, as we process more orders, the co-op spends more on processing costs.

• Each $20 order = ~$0.88 fee (about 4.4% of the order)
• Each $5 order = ~$0.45 fee (about 9% of the order)

Currently, members contribute monthly dues on a sliding scale from $5 to $20, which help cover operating costs such as inventory loss, gas for pickups, and saving for future rental space. However, dues are not tied to how much members order. As some members place larger or more frequent orders, processing fees increase without a direct link to individual usage. See Annex A.

These fees will increase with more members, orders, and volume and will limit our ability to save for the co-op's future needs. To address this, we are proposing several options for members to consider.

Options to vote on

Option 1: Add 5% markup on all orders

• Ensures processing fees are covered per order.
• Keeps monthly dues as-is.
• Estimated additional cost: $0.33 to $1 per order (e.g., $20 order = $1 extra).
• Generate negligible surplus to help with future needs beyond processing fees.

Option 2: Add processing fee amount as markup on all orders

• Ensures processing fees are covered per order, with more exact precision.
• Keeps monthly dues as-is.
• Estimated additional cost: $0.33 to $1 per order (e.g., $20 order = $1 extra).
• Does not build surplus for future needs like inventory loss or rental space.

Option 3: Use dues but increase minimum monthly amount

• Keeps individual order costs the same.
• Raises the minimum dues amount, particularly affecting members paying lowest option.
• May result in members who order less frequently contributing more to cover processing fees generated by higher-volume shoppers.
• Guarantees generating additional surplus to help with future needs beyond processing fees.

Option 4: Leave as-is (no markup, no dues increase)

• No immediate change for members.
• Processing fees continue to be absorbed by existing dues.
• Over time, less money remains for future savings as order volume grows.

Annex A. Monthly revenue and expense calculations

Results

Option 1 (Add 5% markup on all orders) is the winner after counting 15 ballots using Instant Runoff Voting, with 80% of the votes in the first round. There were 15 valid ballots and 0 empty ballots.

Round 1 (count of first choices):