Coop Plans Increased Rebate After Sales Reach $21 Million

The Harvard Cooperative Society plans to increase its membership rebate to 7 per cent and to refund about $750,000 to members this year, Howard W. Davis, general manager, said yesterday.

The refund, which cannot be determined exactly until after the current fiscal year closes on June 30, will be paid equally on members' cash and charge sales.

Davis said the new rebate will be possible because of an expected $21 million total sales volume by the year's end. "We still have two more months to go, but unless we run into something very unusual, we will reach the $21 million figure," he said.

The 7-per-cent rebate and the total sales volume are increases over last year's figures. Last year's total sales reached $18.9 million, giving members a refund of 6 per cent on their Coop purchases.

Davis said that while the society's sales volume increased this year, its expenses did not. This resulted in a larger profit than last year and made the increased rebate possible. The Coop returned $610,000 to its members for 1972-73.

Davis said the Coop has not yet calculated what percentage of its purchases were made by members as compared to those made by non-members.

Under state law, a cooperative society must sell at least 50 per cent of its volume to society members.

If sales to members did not reach the 50 per cent minimum, the Coop will have to pay state taxes on its entire profit.

"There is no question that we have sold more than 50 per cent to Coop members. Absolutely no question," Davis said.

The Coop pays state taxes on profits from all sales to non-members