Canpro’s Mission Statement : “The mission of Canpro is to provide to our independent paint and wallpaper Members a cost effective buying group that will collectively earn preferential pricing and programs from our suppliers in exchange for the assurance that they as suppliers will be paid within our agreed terms. It is our goal to attract the cream of the crop of independent paint and wallpaper stores across Canada, defined not by the brands of products sold, or volume but by their ability to fulfill the members obligations as set out in our share subscription agreement”
The obligations that are set out in the agreement are quite simple, to pay your bills within our terms and policies and to support the programs offered by our suppliers. If you are an independent paint and wallpaper store and want to improve your margins and buying power then Canpro may be the answer.
Frequently Asked Questions about the Canpro Buying Group
Q. What is Canpro? Canpro is a Canadian buying group for leading independent decorating products stores. Our members are typically paint & wallpaper stores, but also include window treatments and other decorating products.
Q. What is Canpro’s mission? Canpro’s mission is to allow our independent members remain competitive with the chains and box stores. As retailers we can only sell our products competitively if we buy them competitively.
Q. Is Canpro Controlled by a manufacturer? No. Canpro is not owned or controlled by any manufacturer. Canpro is owned by our members, independent paint and wallpaper stores.
Q. Is Canpro owned by Allpro? No, Canpro owns shares of Allpro Corp., which operates the Allpro buying group, primarily in the U.S. Canpro is a full voting member of Allpro, and our members have access to all of the Allpro programs. The cost of belonging to Canpro is a fraction of the cost of belonging to Allpro.
Q. Who can join Canpro? Canpro membership is open to independent decorating product retailers. Canpro is not affiliated with any one paint company, nor do prospective members have to be of any specific volume, however members with sales of $750,000.00 plus will realize an excellent economic return on their investment in Canpro.
Q. How does Canpro work? Canpro members purchase product directly from our over 100 approved suppliers. Pricing from the suppliers is generally lower than individual dealers would pay. The suppliers invoice Canpro, whom in turn invoices the member for his purchases, adding a small upcharge for handling the transaction. All Discounts offered by the supplier are passed on to the member. There is no hidden central billing discounts.
Q. How much is the Upcharge?
Canpro strives to be as economical as possible, and has revised our upcharge to reflect efficiencies of scale and increased efficiency in our administration. Canpro now works on a 3/10 of 1% surcharge on all purchases, invoiced monthly. The Canpro board reviews the up-charge rate on an annual basis.
Q. How much will I save?
The savings vary greatly from supplier to supplier. Some of the savings will be at preferred pricing, some by better payment discounts and some by group volume rebates, from the sup- pliers that offer volume rebates programs. The savings are significant.
Q. Are all Canpro Programs Centrally Billed?
Canpro is a central billing buying group. All billings must be done through the Canpro office.
Q. What are Canpro’s Terms?
Canpro’s requires our members to make only one payment per month, with the payment to be received by Canpro no later than the 15th of the month following. The monthly billing cutoff for the majority of our programs is the 25th of the month, with statements being sent to our members at month end. If payment is made on the 15th of the month, our members never miss cash discounts.
Q. What happens if I don’t pay within Terms?
The day after your payment was due to arrive at the Canpro office (or into our account) members whose payment does not arrive will be given a courtesy phone call, advising them that they have 24 hours to get the deposit in, or the suppliers will be notified that they are on credit hold. The term discounts offered on our Invoice Statement will be billed back as unearned, and interest will be charged on the account.
Q. One of my current suppliers terms are 1.5% 45 days net 60 days, can I take the 60 days?
If the suppliers terms permit, yes we can arrange for the extra month, provided that the net due date is after our next payment cycle.
Q. Some of the suppliers usually give me booking orders and extended terms.
Many Canpro suppliers offer extended terms on promotion orders, and Canpro passes this additional time on to our members.
Q. If Canpro automatically takes advantage of suppliers terms discounts, what happens if the supplier offers a prepayment discount on a long term invoice? Canpro assumes that most of our members want to take advantage of term discounts. However if a member wishes to take advantage of longer terms, the member can simply advise the Canpro office, that you wish to take the longer terms.
Q. How does Canpro do its billings?
The majority of the invoices that come to Canpro now come by edi (electronic data interchange), usually the day after the goods were shipped. Canpro’s software automatically converts the data to a pdf document and e-mail it to our members. No special software is required by the member.
Invoices that arrive on paper, are processed by Canpro and then scanned and emailed to the members on a weekly basis.
Once a month Canpro issues an “Invoice / Statement” that summarizes all purchases made in the month by supplier, and has a net amount due on the 15th of the month following. The Invoice Statements also have the Canpro surcharge shown. These are emailed to members at each month end.
Q. How much does it cost to join Canpro?
Shares in Canpro are $1000.00, plus a $1000.00 Initiation fee and a $4000.00 deposit (Total $6,000) In addition there is a monthly Membership is $89.00 per month, for the primary location and $14.00 per month for Branch Stores.
Q. Does Canpro pay interest on the deposit? No, since all Shareholders are required to maintain the same deposit, to fund the operation of Canpro, interest is not paid to shareholders.
Q. That is a little extreme. None of my other suppliers demand a deposit, financial statements or a personal guarantee, why does Canpro? Canpro is not a supplier, you are applying to become a shareholder. In fairness to the existing shareholders it is our duty to ensure that new shareholders are financially committed and stable.
Q. What is the Share Subscription Agreement? The Share Subscription agreement is simply the rules of the group, outlining the groups responsibilities and the responsibilities of the Shareholders. A personal guaranty is part of the participants agreement. A sample copy of the Share Subscription agreement will be provided once we receive an application.
Q. What if I am not satisfied?
Canpro members can resign at any time, our approved suppliers will be notified that the member resigned, and as soon as all invoices are issued and payments are received the members share will be repurchased and deposit will be refunded.
Q. Do I have to buy from Canpro Suppliers?
No. Canpro members are independent dealers, and there is no obligation to do business with any particular supplier. You are free to purchase from whomever you choose, however you will want to do business with as many of our suppliers as possible to ensure an excellent return on your investment in the group.
Q. Will all Approved suppliers sell to all Canpro members?
No. Our approved suppliers maintain the territorial rights of their products. If a supplier feels that his product is adequately distributed in your area, then they may refuse to set you up as a dealer.
Q. How do I place my orders?
All normal orders are placed directly with the supplier , and shipped directly to the members location. (just like you do now). There are no special purchase orders required, nor is there any delay in processing your orders.
Q. Does Canpro stock product at the Distribution Centre? Yes. Canpro operates the Edmonton Distribution Centre, and provides a wide range of products to our members, usually below the prices charged by other 2 step distributors.
Q. Does Canpro do Group Booking Orders?
Canpro does a lot of group and booking orders where it makes sense, due to savings when buying in bulk, or to meet difficult prepaid minimums, mostly from US Suppliers. Order forms are on the Canpro members exclusive website. Canpro will place the orders with the manufacturer for shipment to the Canpro Distribution Centre where the orders will be broken down and shipped (or picked up) to the participating dealers.
Q. How do I get the supplier information? Canpro has a members resource website, with all of the basic information about each of the suppliers programs. This includes information on all current Canpro and Allpro suppliers, and in many cases includes the suppliers Catalogues. The approved suppliers will also contact the members with periodical updates, new products and sales presentations. New suppliers and products are often featured in Canpro’s member newsletter which is the heart of the Canpro website.
Q. How does Canpro Communicate with its members?
Canpro keeps in contact with the membership by regular updates to the website, with new suppliers, new members, and special offers for Canpro members. When new information is posted to the website, an e-mail is sent to all members. Members can also keep up to date with the Allpro programs by visiting the Allpro website that has weekly updates.
Q. Whom are the approved Suppliers to Canpro? Canpro’s suppliers are likely to include many of the suppliers that your are currently purchasing products from. A partial listing of the current suppliers is included in this package. We are always looking for new suppliers and welcome suggestions from our membership. In addition to the Canpro Suppliers, Canpro members have full access to the over 120 supplier programs of the Allpro Buying Group. There is no additional charges to access the Allpro Programs by Canpro members.
Q. Does Canpro have meetings? Canpro has an annual meeting that all members are invited and encouraged to attend. This meeting gives a review of the year, review of Canpro Financial Statments, Election of Directors and committee members, and gets input from members on what new suppliers should be contacted etc. The meeting usually includes a table top trade show with 70+ suppliers showing off the newest and the best, with significant specials. This is an excellent networking meeting.
Our 2020 meeting will be in Toronto on Sept 26 & 27th. Our meetings and trade shows are open to members and approved vendors only. Saturday will have member workshops, with our Annual meeting and trade show on Sunday. Canpro reimburses our members to attend our annual meeting and trade show usually one return airfare and two night hotel expense.
Q. Does ALLPRO have meetings?
Allpro has a Spring and fall Sales Meetings and Trade shows. The Spring show is usually held in Florida or the Western US desert in March of each year. The fall show features work shops, and the election of Allpro Officers. Canpro Members are invited to attend the ALLPRO Shows, which offers excellent buying and educational opportunities.
Q. What happens to the annual volume rebates from the Suppliers? Annual volume rebates are a very significant advantage of belonging to Canpro. Each year over an average of over $2000.00 has been rebated back to each of our members. Volume rebates from each supplier that offers volume rebates are distributed by the members that created the volume with that supplier on a proportional basis. Some suppliers offer two rebate programs, or growth incentive programs one based on the “Group purchases” and one based on “individual members” purchases. All rebates are passed directly on to the member whom earned it.
Not all suppliers offer a volume rebate program.
Q. How and when are the rebates paid?
Annual volume rebates are paid by credit note to the members early each year, as soon as possible after the rebates have all been received from our suppliers (Normally in April or May).
Q. I already belong to another buying group is this a problem? We are of course aware of the other buying groups in the market. Although some of the Canpro vendors are vendors to other buying groups, we are confident in the strength of our programs and that our members will want to support the buying group that they own.
Q. How does Canpro make money?
Our budget and goal for Canpro is to break even or show a small profit each year. Our Goal is to ensure that our members save money. The group however is able to break even with only the membership fees, the .3% up-charge. Unlike some other building supply buying groups, Canpro does not solicit, nor will it accept from any of our suppliers hidden rebates, term discounts or kickbacks. All term discounts, trade discounts and central billing discounts are passed directly onto the member on the face of the Canpro invoice. Each Shareholder receives audited copies of our Financial Statements on an annual basis.
Q. Whom do I contact with my own questions?
Q. Any other requirements?
All members must be able to receive billings and communications by e-mail and should have internet access to keep up to date with Canpro Programs.
Q. How do I join?
The next step would be to fill in an Application to become a shareholder. This starts a chain of events.
• Canpro will then forward to you a complete package that includes the requirements of the Security Commission to sell shares, which is a disclosure document, and copies of Canpro’s most recent financial statements, and a sample of our share subscription agreement.
• If the disclosure package meets the prospective members approval then the prospect is required to provide to our chartered accountant, their most recent annual financial statements.
• Once approval from the Accountant, then the member will be presented a Shareholders agreement, and payment requested.