Question

Why are consumer cooperative stores considered to be less expensive? What are its relative advantages over other large scale retailers?

Answer 1

Answer:

Consumer cooperative stores are considered to be less expensive because :  

• (1) The purchases are made in bulk therefore trade discounts are available to consumer cooperative stores.
• (2) The number of middleman like wholesaler and retailer are reduced. The members gets supply of goods at reasonable prices.
• (3) The Consumer cooperative society is operated by its members , so it has lesser cost of  administration .They don't need not to spend much on decoration of  building and in advertisement.
• (4) The government also give financial help and concessions to Consumer cooperative stores .  

Relative advantages over other large scale retailers are :  

Consumer cooperative store is a retail business which owned by the consumer themselves. The society enrols members either from the general public or particular groups like the employees of an organisation. Their main aim is to reduced middlemen and provide goods to the members at low cost . The consumers join together and manage the business and the project .Consumer cooperative store deal in all types of consumer goods for daily use. The store may sell goods to members as well as non members. Goods are sold only cash basis. Hence the requirement for working capital is reduced.The members get fresh goods and cheap commodities from the stores.

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