Advantage and disadvantage point of purchase in table form
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Advantages:
(1) Convenience in Payment:
The buyer is greatly benefited as he has to make the payment in installments. This system is greatly advantageous to the people having limited income.
(2) Increased Volume Of Sales:
This system attracts more customers as the payment is to be made in easy installments. This leads to increased volume of sales.
(3) Increased Profits:
Large volume of sales ensures increased profits to the seller.
(4) Encourages Savings:
It encourages thrift among the buyers who are forced to save some portion of their income for the payment of the installments. This inculcates the habit to save among the people.
(5) Helpful For Small Traders:
This system is a blessing for the small manufacturers and traders. They can purchase machinery and other equipment on installment basis and in turn sell to the buyer charging full price.
(6) Earning Of Interest:
The seller gets the installment which includes original price and interest. The interest is calculated in advance and added in total installments to be paid by the buyer.
(7) Lesser Risk:
From the point of view of seller this system is greatly beneficial as he knows that if the buyer fails to pay one installment, he can get the article back.
(1) Convenience in Payment:
The buyer is greatly benefited as he has to make the payment in installments. This system is greatly advantageous to the people having limited income.
(2) Increased Volume Of Sales:
This system attracts more customers as the payment is to be made in easy installments. This leads to increased volume of sales.
(3) Increased Profits:
Large volume of sales ensures increased profits to the seller.
(4) Encourages Savings:
It encourages thrift among the buyers who are forced to save some portion of their income for the payment of the installments. This inculcates the habit to save among the people.
(5) Helpful For Small Traders:
This system is a blessing for the small manufacturers and traders. They can purchase machinery and other equipment on installment basis and in turn sell to the buyer charging full price.
(6) Earning Of Interest:
The seller gets the installment which includes original price and interest. The interest is calculated in advance and added in total installments to be paid by the buyer.
(7) Lesser Risk:
From the point of view of seller this system is greatly beneficial as he knows that if the buyer fails to pay one installment, he can get the article back.
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