Capricorn Co-operative
• A co-operative model and the context
of Australian trade
• October 2015
Capricorn Group
Capricorn’s purpose is to help members build value, efficiency and sustainability in their
business and community.
Capricorn
Group
Automotive
Capricorn
Finance
Risk and
Protection
Financial
Services¹
Other
Investments
Capricorn
Travel
¹Strategy currently under development
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What is Capricorn?
Capricorn is a Co-operative that links small businesses with bigger businesses for their mutual
benefit
Our members are like-minded business owners (automotive repairers) who are looking to
maximise their collective efforts in gaining access to parts and services to support their
businesses
Capricorn provides the contacts and infrastructure to enable this to happen
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What is Capricorn?
Capricorn is a Co-operative that links small businesses with bigger businesses for their
mutual benefit
Capricorn has been operating in Australia for 40 years
and is Australia’s largest Automotive Parts buying
group
Each of our members are shareholders and Capricorn is
Australia’s 4th largest Cooperative
Capricorn has the combined buying power of over
16,400 Member businesses in the Automotive Industry
being supported by around 2,000 suppliers
With annual turnover in excess of $1.41 billion
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Who are our members
Small to Medium Enterprises that operate in the Automotive Service and Repair Market
Our members run automotive
workshops that cover all spectrums
of the automotive service and
repair market
The average profile of a Capricorn
member workshop is:
• Small to medium business
• 3 mechanics
• 4 bays
• Operating 5 and a half days a
week
Members embrace Capricorn
because we make it easier for them
to do business
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Automotive workshop categories
Agricultural
Auto Electrical
Commercial Truck
Convenience Store (Fuel Only)
Engine Re-conditioner
Engineering/Industrial
Marine
Mechanical Workshop
Panel & Paint (Smash Repairers)
Retail Store (Reseller)
Service Station & workshop
Transmission
Tyre & Suspension
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How it works for members
Capricorn facilitates e-trade activities on for members
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Each member business is given a personal
account number
The member orders parts directly with the
supplier, as they do now
– The goods still get delivered as usual
– They receive a priced invoice on delivery
– Credits are treated the same way as they are
now
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The member receives one itemised
statement for all purchases made during the
month on approximately the 10th working
day of the next month
They reconcile one account and pay
Capricorn on or before the last working day
of that month (30 day trading account)
Capricorn pay the suppliers on their behalf
slide 6
What it means to be a member
Capricorn’s key goal is to make trading easier
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One account with over 5,500
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supplier locations
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Access to the Capricorn Purple
goods as invoiced
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Pages (Supplier Directory)
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Access to Capricorn Risk Services
No cost to them - they only pay for
Leveraging strength in numbers
(No member should pay more)
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(Capricorn Mutual & Capricorn IS)
One payment for all purchases
regardless of number of suppliers
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Access to Capricorn Finance
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No minimum or maximum monthly
book/direct credit, direct debit, B-
purchases
Pay & POSTbillpay
Easy payment options: ANZ deposit
slide 7
What's in it for the member
Ease of trade and exclusive member benefits
Members own shares in Capricorn and
Reward Points can be redeemed by:
have the opportunity to receive
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Investing in more Capricorn shares
dividends on the shares that they own
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Payment towards their Capricorn
Member benefits include a 1.5% return
for their purchases on their Capricorn
account paid as reward points – for every
dollar that they spend with a preferred
supplier they receive 1.5 reward points
account
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Travel through Capricorn Travel
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Gift vouchers for Myer, Harvey Norman,
Liquorland/Vintage Cellars, Kmart,
Coles, Target, Woolworths or Bunnings
slide 8
How it works for Suppliers
Capricorn offers sales and administration benefits to our suppliers
along with sole access to Members
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Guaranteed 30 Day payment
No need for credit checking
No bad debts, no “bounced
cheques”
Administration cost slashed
(banking, postage, chasing cheques)
Target marketing access to
thousands of automotive
businesses
Marketing access to flyers with
statements
Inclusion in Capricorn Events
Capricorn Reward Points gives
suppliers a sales advantage
Preferred Supplier listing in Purple
Pages
Member Penetration Reports
tracking suppliers sales to our
members
Access to our Field team
slide 9
Australian Co-operatives
• Australian industrial landscape
• Export & Import
Co-operatives and Mutuals (CMEs) in Australia
Australia has a diverse co-operative landscape with a high level of participation per head of
capita
The first Australian consumer co-operative was registered in 1859
More than
13.5 million
memberships
generating a
turnover of
over $25
billion per
annum
More than
15% of ALL
Australian
Agriculture is
managed by
CME’s
CMEs
including
memberowned
superfunds
contribute
around 7% of
our country’s
earnings
Motoring
organisations
are owned by
more than 7
million
members
Mutual
insurers and
friendly
societies
provide
insurance to
more than 2.3
million
Australians
Customer
owned banks,
credit unions
and building
societies have
4.5 million
members
slide 11
Co-operatives and Mutuals in Australia
Australia has a diverse co-operative landscape with a third of the Top 100 Co-operatives
turnover being sourced from Agriculture and Fishing – key Australian export markets
Source: National Mutual Economy Report, 2014
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Co-operatives and Mutuals in Australia
Australia has a diverse co-operative landscape with a high level of participation per head of
capita
The above represent a selection of Australian Co-operatives participating in
some of Australia’s key Export and Import markets
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Business Council of Co-operatives and Mutuals
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The BCCM was formed in 2013 following the United Nations International
Year of Co-operatives 2012.
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The BCCM is the national peak body representing the co-operative and
mutual models of enterprise in Australia.
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We represent various sectors in the economy including agriculture,
insurance, banking and finance, personal services, shared services,
wholesale and purchasing, retail and housing.
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Our members include some of Australia’s largest companies including the
CBH Group, Capricorn, The Co-op, NRMA and HCF along with smaller
organisations across the country.
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Business Council of Co-operatives and Mutuals
The BCCM is committed to:
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Providing leadership in research, education and advocacy
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Encouraging CMEs across all sectors to share best practice to foster
partnerships
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Promoting the role of CMEs in the national economy
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Increasing the number of CMEs in the economy
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Business Council of Co-operatives and Mutuals
Some milestones reached:
• Federal Senate inquiry: A federal inquiry has been established to examine the
role, importance, and overall performance of co-operative, mutual and memberowned firms in the Australian economy. Report due in February from committee.
• Government reviews: Co-operatives and mutuals have been lauded in federal
government reviews over the past year including a competition policy review, a
review into Australia’s welfare system and a White Paper on Agricultural
Competitiveness
• Funding: The Federal government have committed $14 million in funding in
agriculture for a two-year pilot programme to provide farmers with knowledge
and materials on cooperatives, collective bargaining and innovative business
models
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Co-operatives and Mutuals in Australia
A brief selection of active co-operatives in some of Australia’s agricultural export
markets and industry statistics
Meat & Fish contributed $8.7bn towards Australian
exports
Dairy contributed $2.72bn towards Australian exports
Fruits contributed $500m towards Australian exports
Wheat contributed $6.75bn towards Australian exports
Cotton contributed $2.57bn towards Australian exports
Source: Australian Food Statistic Report, 2012-2013
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Co-operatives and Mutuals in Australia
Capricorn and the Business Council of Co-operatives and Mutuals Australia
welcomes the opportunity to start a co-operative conversation on trade
opportunities.
Please contact either
Melina Morrison
Greg Wall
CEO
Group CEO
Business Council of Co-operatives and Mutuals
Capricorn Society Ltd
E: melina.morrison@bccm.coop
E: greg.wall@capricorn.coop
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Thank you
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