Features of Consumers’ Cooperative Society
Whenever the consumers of a particular area collectively establish a cooperative society with a view to purchasing daily necessary commodities at the optimum price this cooperative society is called Consumers’ Cooperative Society. A consumer cooperative is a cooperative business owned by its customers for their mutual benefit. It is a form of free enterprise that is oriented toward service rather than pecuniary profit.
Consumers’ Cooperative societies have various kinds of dynamic features. These are as follows:
Supply of goods: It is the main task to provide daily necessary commodities to the members of the consumer cooperative society. Cooperative members purchase commodities directly from the producers or importers and purchase their commodities at the cheaper rate to the members to ensure the supply of goods.
Product price: Consumers’ cooperative society purchases the products from the producers or importers. That’s why organization sells these products at the cheaper rate as well.
Quality of goods: As consumers of cooperative society purchase the goods from the original producers and collect authentic goods. That’s why the members get original goods also.
Supply of capital: Members collect the capital of the organization from the members. Capital is divided into particular number shares and each share has a face value on the basis members can purchase. Members can purchase share to pay the particular amount.
Directing: Managing director and operators are selected among the members of cooperative society. Managing board is build-up from the members of the organization. Managing board operates the operative as well managerial activities.
Distribution of dividend: Profits are distributed among the members at the end of the year. The dividend is distributed against each share. The dividend is also provided on the total purchase amount of the shares. More purchase takes more divided.
The dignity of members: Each member has equal dignity though share amount is different. Rights and responsibilities are equal to each member. There is no discrimination among the members of the cooperative society.
Elimination of middlemen: Consumers’ cooperative society purchases the goods from the original producers and that is enough to eliminate the middlemen.
After considering above mentioned features we can say that consumers’ cooperative society has huge positive features which are enough for the success in the country.