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Controlling Prices
It helps in controlling the prices since the middlemen are avoided.
Purchases are made in bulk and advertisement expenses are almost nil. 
Disadvantages of Consumers’ Co-operative Stores 
The disadvantages of consumers’ Co-operative stores are as follows : 
a) 
Uneconomic Size
The existing consumers’ co-operative stores are too small to operate 
economically. The membership is also limited. 
b) 
Shortage of Funds
The stores are suffering from the shortage of funds. The poor economic 
position of the members restricting the expansion and growth of stores 
owing to its insufficiency of capital. 
c) 
Inefficient Management
The members incharge of the stores lack business ability, training and 
experience. This is resulting in inefficient management of stores and 
ultimately running in losses. 
d) 
Lack of Wide Choice
The members do not get a wide choice in making purchases as in the 
case of departmental stores. Only few and important essential 
commodities are made available at stores. 


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e) 
Disloyalty of Members
It depends on the loyalty of its members. Stores are often the victims of 
manipulations and frauds by the office bearers, with the result they are 
running in losses. 
f) 
Lack of Incentive
It is difficult to get efficient staff because of low salary. The paid staff of 
the stores lack initiative and incentive with the result the performance is 
quite discouraging. There is no direct incentive to bring down expenses 
and increase sales. 
g) 
Capital is Withdrawable
Since it allows the withdrawal of the capital, it leads to serious difficulty 
because, number of members may withdraw their shares in times of 
depression or other crisis. 
h) 

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