Cooperatives are successful because they provide valuable services and save consumers money. Since the primary goal of cooperatives is to meet needs, not generate profits, they can serve their members at low cost. Cooperatives often provide services to their communities that are not readily available from for-profit businesses. In other cases, cooperatives enhance the level of competition in the marketplace by providing consumers with an alternative source of products and services. The central principle of consumer cooperatives is member control and participation.
Members control the business and provide capital for a strong and efficient operation.
And, members receive all net savings left after money is set aside for operations and improvements. Consumer cooperatives provide most important products or services a person might need. For example, credit unions usually charge fewer and lower fees, and lower loan rates, than do competitors. Because credit unions serve the broad middle class, they can meet the needs of an increasing number of underserved communities, including youth, seniors and minorities. As many banks abandon low-income communities, a growing number of credit unions are finding ways to serve low and moderate income households.