Objectives of Consumers’ Cooperative Society

Objectives of Consumers’ Cooperative Society

Objectives 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. Consumer cooperatives are an essential element of the economic landscape, existing as a self-governing organization that democratically serves the needs of those who choose to belong to it. It is a cooperative business owned by its customers for their mutual benefit.

Aims of the consumer cooperative society –

  • to assemble the needs of the consumers in good eminence goods and services at a reasonable price;
  • to conduct trading and public services; to serve the inhabitants within the trade enterprises (shops, stalls, tents) and within the catering facilities (restaurants, canteens, cafés);
  • to produce goods, to supply household and manufacture.

Consumers’ Cooperative societies have specific objectives also by which it runs to implement these objectives in society. These objectives are as follows –

  • To supply goods at low prices

The main objective of consumers’ cooperative society is to provide the goods at the low or optimal prices to the members. Few people have organized it due to enjoying this low price commodity among them.

  • To eliminate middlemen

Poor people can afford to low rate of products and expect free from the exploitation of the middlemen by the elimination of middleman from purchasing products and taking services. Manufacturers would eliminate the middleman by selling products directly to retail stores or consumers.

  • To facilitate more purchase

If the price is an optimum level or low, a consumer can purchase goods than the expected demand. Each consumer feels relax to consume sufficient product as well. It means to make something easier or more likely to happen.

  • To increase the purchasing power of members

Increase in the purchasing power of members is one of the important objectives of the consumers’ cooperative society. Members can purchase more at a lower price, on the other hand, get dividend at the end of the year.

  • To control business effectively

Operators are appointed among the members of the cooperative society. That’s why they perform with great efficiency as they assume their own organization. It is enough to be a success of the business. Before you consider growing your business you should have processes in place to effectively control your business.

  • To develop a standard of living

Each member can live peacefully as well as a solvent with cooperative care. Consumers’ cooperative society tries to develop a standard of living by providing necessary goods and services to the members at a low price. The standard of living is closely related to the quality of life.

  • To supply of desired goods

Consumers’ cooperative society always tries to provide desired goods to the members. It is the main task to supply the products at a low price. It is to also careful to supply standard products.

  • To solve the unemployment problem

Consumers’ cooperative society is strongly contributing to solving the unemployment problem. Various sectors are appointing manpower in this organization as well.

Consumers’ cooperative society has huge objectives to solve social problems. These objectives are related to the local people of the country. Gradually they expand their business to contribute to various sectors.

Advantages:

  • A smaller amount advertisement expenses are incurred.
  • Profits earned are not spent on unproductive investments.
  • It makes members feel the sense of belongingness to the society.
  • It develops the administrative aptitude amongst members.

Limitations:

  • It caters to the needs of average income groups.
  • It suffers from low finances.
  • There is too much dependence on the sincerity and faithfulness of workers.
  • There is a lack of appropriate sales endorsement derives by salesman society.

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