The Harvard Cooperative Society today will begin paying membership rebates of 7.35 per cent of each member's total purchases for the year, in its highest rebate since 1966.

Upward Trend

The rebates have been increasing steadily every year since reaching a low of 2 per cent in 1970, down from a high of 9 per cent in 1966.

Howard W. Davis, Coop general manager, said yesterday that he expects the upward trend to continue. "Our sales for the first three months of this year are way ahead of last year, although obviously everyone is concerned about the economy and it's hard to predict what's going to happen," Davis said.

One of the main reasons for the steady increase is that since 1970 the Coop has begun to sell more brand name merchandise, Davis said. The merchandise is also more diversified now with the opening of new departments, he said, and that has helped.

Davis added that since the late sixties the management has also become more concerned with competitive pricing, and today the Coop's prices compare favorably with other retailers in the area.

"Another important reason is that we have a dedicated staff of employees who have worked hard to increase efficiency and productivity," Davis said.

The Coop has so far managed to avoid any adverse effects from the problems of inflation or recession, Davis added, "but the retail sector usually enjoys a lag in bad times so we have to be cautious."

The rebates come from the profit that the Coop makes on sales to members. This profit is not taxable so it is almost all returned.

Profits on sales to non-members pay for most of the Coop's operating expenses. These profits are taxable and almost half goes to the federal government