Sept. 21, 2015


  • I see these patronage payments as lazy pricing. The best time to reward members is at the time they use the credit union. If there are excess earnings, reduce loan rates or increase dividends. Members select services partly Duer to the price. Rarely does any member buy in anticipation of a refund or bonus dividend. If you adjust prices instead of paying bonus dividends then you reward the member who uses the service. Bonus dividends are not that precise.
    Henry Wirz
  • Thanks as always for sharing your insight, Henry. We appreciate it your readership, too.
    Marc Rapport