ADVANTAGES OF CONSUMER CO-OPERATIVES

Consumer Co-operatives are formed by a group of consumers to buy goods on wholesome and sell them to the members at existing market prices.

Their aim is to eliminate the wholesalers and retailers and hence obtain goods more cheaply

The co-operatives allow their members to buy goods on credit or in cash

Members of the public are also allowed to buy from the society at normal prices thereby enabling the society to make more profits

The profits realized is shared among the members in proportion to their purchases i.ethe more a member buys, the buyer his/her share of profit

Examples;-Nairobi consumer co-operative union, Bee-hive consumer co-operative society and City-chicken consumer co-operative society

Advantages of consumer co-operatives

• Sell goods of high quality
• Sell goods to members at fair prices
• Sell goods to other people at normal prices thereby making more profit
• Buy goods directly from the producers thereby eliminating middlemen. They are therefore able to make more profit
• Can give credit facilities to the members
• Can pay interest on capital to the members

• Sell a variety of goods to the members at a place where they can easily get them

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