At our recent strategy day with the Board of Directors, we discussed the fact that, since its inception in 2000, the CRA has never changed the model it uses for calculating membership subscriptions, which is per shop, with a minimum amount per annum and a cap for the largest retailers. However, since then world has changed:
- A significant increase in larger format stores, including superstores
- A huge growth in the number of members using online platforms such as eBay, and indeed their own websites, for selling both new and donated goods
As a trade association, we feel it’s important that our membership model reflects the way our members work, and we have consequently decided on some simple but important modifications to the membership model for 2022-23.
We did briefly consider a turnover-based model, but that turned out to be much more difficult than we thought to implement fairly, and it was clear that it would have unpredictable consequences for both our members and ourselves. Instead, we have come up with the following scheme to be implemented from the next renewal period.
1. No increase in the base rate of membership
- For standard size shops with a net selling space of 4,900 sq feet (464.4 sq m) or less, there will be no change to the charges
2. Charging more for much larger stores
We do believe it is right to charge more for much larger stores. Here are the details:
- For larger shops with a net selling space of 5,000 sq ft (464.5 sq m) to 9,999 sq ft (928.9 sq m) the per shop charge will be multiplied by 50%, i.e. it will be 1.5 times the amount for the standard shops
- For very large shops with a net selling space of 10,000 sq ft (929 sq m) or more, the per shop charge will be multiplied by 300%, i.e. it will be 3 times the amount for the standard shops
3. Reflecting our support for online activity
To reflect our support for online activity we will charge for that as well. A flat rate charge for having an online presence will be levied as follows:
- If you have 4 or fewer shops, £30
- If you have 5-20 shops, £50
- If you have 21-100 shops, £100
- If you have more than 100 shops, £200.
4. No increase in the minimum charge
There will be no increase in the minimum charge of £233 + VAT, (or £263 + VAT if you have an online presence)
Please note that the calculation of net selling space does NOT include the back office or other places (such as warehouses or conference rooms) where selling is not done and the public is not admitted. It should only include space for goods for sale are visible to customers.
As usual, the renewal process will be implemented on an honesty basis, and you will receive your chance to submit this information via your membership renewal in the new year.
Our belief is that this is the fairest way of reflecting the new realities of charity retail, but if you don’t agree please let us know! We believe that in most cases the online charge will be the only increase that members will pay, but if some have to pay more for larger shops that does seem fair to us.
Please send your feedback to Robin Osterley at firstname.lastname@example.org