Meaning, Features and Advantages of Consumer’s Co-Operative store.
The societies started to help lower and middle class people and protect these sections from the clutches of profit-hungry businessman are called consumers co-operative stores. A consumer’s co-operative society is a combination of persons whose aim is to economize by buying in common and retain their profits by selling in common. According to M.C. Sukla, “A consumer co-operative store in an economic enterprise set by the consumers for the distribution of fundamental consumption goods, primarily among the shareholders to the subscriber consumers who are called members of such organization and who have an equal voice in the control of the organization.
The followings are some of the essential features of a consumer’s co-operative store:
i. There is no restriction on membership of a consumer co-operative store as any adult person can become a member of a co-operative.
ii. The members of the consumer co-operative store and distribute capital in the form of share. A member can purchase shares of a value of Rs. 1000 only. Beyond this, shares are not issued to members.
iii. The surplus of a store is distributed among the members in the form of dividend. The dividend is paid in proportion to purchases made by the members.
iv. It adopts the principles of one man one vote. A man is not allowed vote by proxy system.
v. The trading of co-operative stores is made on the basis of cash.
vi. A sale can be made to non-members on the basis of market rate.
vii. It makes bulk purchases directly from the producers and sell these goods to its members on retail basis.
A consumer’s co-operative store has the following advantages:
i. It facilitates its members in getting pure and unadulterated goods at a competitive price.
ii. It develops a state of moral booster to the poor people who develop greater confidence among themselves.
iii. As the societies are purchasing goods in bulk quantities from the producers, these are in a better position to supply these goods at a competitive price to its members.
iv. It improves the purchasing power of the members since dividend is paid on the basis of purchases made.
v. It encourages people to save.