Product Discounts
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Description
SELC (U.S.A.):
"Companies like Costco sell memberships in exchange for product discounts received at the time of purchase. Another interesting model is REI. REI is a consumer cooperative that sells memberships to its customers. At the end of the year, REI members receive a “dividend” based on the amount spent at REI during the year. REI takes the position that its memberships are not securities because what members are really buying is the right to receive discounts on the items they purchase – not at the time of purchase like at Costco, but at the end of the year in the form of a rebate check." (http://www.shareable.net/blog/shared-financing-of-community-based-businesses)