Meaning of 'Consumers' Co-operative Stores'
The consumers' co-operative stores are the general shops of selling the consumable items, run on the basis of co-operation by the consumers. In other words, it might be said that the consumer’s cooperative store is a voluntary association of the consumers which are set up with the objective of meeting the needs for things and services. These stores have come up for eradicating the intermediaries from among the distribution system, for distributing the profits mutually, and for making available to the consumers the commodities of common use easily and on reasonable prices. Due to the consumers' cooperative stores, the consumers are able to get the non-adulterated goods easily.
Characteristics of Consumers' Co-operative Stores
The following are some of the main characteristics of the consumers' co-operative stores:
(1) Membership. Any adult person could become the member of these stores. Their membership is open to all. The consumers' co-operative stores are generally set up for the benefit of some specific categories of persons.
(2) Advertisement. By these stores, the least attention is paid to the advertisements.
(3) Prices of Commodities. The prices of the commodities sold by the consumers' co-operative stores remain generally lower than those prevailing in the market.
(4) Voting Rights. In these stores, every member is entitled to cast only one vote. The voting right doesn't depend upon the number of shares held.
(5) Democratic Management System. The consumers' cooperative stores are' managed on the basis of democratic system.
(6) Capital. These stores issue the shares for raising the share-capital. Shares are of small denominations.
(7) Distribution of Dividends. The dividends are distributed to the members in the proportion of the amounts for which they have made the purchases from the stores.
(8) Right of Withdrawal of Capital. In the consumers' co-operative stores, the members are entitled to withdraw their capital at any time they desire.
(9) Sale of Commodities. These stores resort to cash sales of the things. Hence, there lies the least possibility of the bad debts.
Merits of Consumers' Co-operative Stores
The following are some of the main merits of these stores
(1) Least Chance of Bad Debts. Since in these stores the sales are undertaken only on the cash basis, hence there is very less chance of the bad debts. In other words, it might be said that the consumers' co-operative stores deal in cash business.
(2) Procuring the Un-adulterated Goods. Due to other establishment of the co-operative consumers' stores there has been a total closure of the supply of adulterated goods to the members.
(3) Protection Against the Exploitation by Middlemen. Due to the setting up of these stores, the consumers are saved of the middlemen's exploitation.
(4) Creating the Feeling of Co-operation Among Members. On account of the consumers' co-operative stores, there develops the feeling of co-operative among their members.
(5) Lower Prices of Things. The things are available to the members of the consumers' co-operative stores on a comparatively lower price than those in the open market.
(6) Lower Costs of Running. As compared to the other retail commercial bodies, the running costs of these stores are much lower.
(7) Hold of the Members on Profits. On the annual profits of the stores, oily the members have a total hold for their disposal.
(8) Full Attention to the Members' Interests. Since only one committee undertakes the management of the stores, hence it takes care of the interests of all the members of the organization.
Demerits of Consumers' Co-operative Stores
The following are some of the demerits or abuses of the consumers' cc,-operative stores :
- In the working committee of the consumers' co-operative stores, there are some selected members only who try to meet only their own personal ends and pay less attention toward the interests of the others.
- When the number of members very much increases, the problem of control of the stores arises.
- Since there is no personal interest of any member in the stores, hence he doesn't pay any attention toward its successful running.
- In ease of the difference of opinion arising among the members, these stores are also required to be closed down.
- Among the management of the consumers' co-operative stores, there is often the lack of the commercial knowledge and experience. Hence, they fail in successfully running or administering the stores' working.
- There is also visible the influence of the party-politics among the management of the stores. It-, various evil consequences have to be borne by the members in general.
- The number of the 'customers of the consumers' co-operative stores is generally very limited.
