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(iv) Lower prices: A cooperative store purchases goods directly from the manufacturers or

wholesalers and sells them to members and others. Elimination of middlemen results in lower

prices for the consumer goods to the members.

(v) Cash sales: The consumer cooperative stores normally sell goods on cash basis. As a result,
the requirement for working capital is reduced.

(vi) Convenient location: The consumer cooperative stores are generally opened at convenient

public places where the members and others can easily buy the products as per their
requirements.

Limitations

The limitations of consumer cooperative stores are given as below:

(i) Lack of initiative: As the cooperative stores are managed by people who work on honorary

basis, there is a lack of sufficient initiative and motivation amongst them to work more

effectively.

(ii) Shortage of funds: The primary source of funds for a cooperative store is the money raised
from members by issue of shares. The stores generally face shortage of funds as membership is

limited. This comes in the way of growth and expansion of the cooperative stores.

(iii) Lack of patronage: The members of the cooperative stores generally do not patronize them
regularly. As a result of this, the stores are not able to operate successfully.

(iv) Lack of business training: The people entrusted with the management of cooperative

stores lack expertise as they are not trained in running the stores efficiently.