SMALL SCALE RETAILERS

General features

1. A small-scale retailing business is normally run as a sole proprietorship or as a partnership.

2. The small amount of capital needed is raised from personal savings, or borrowed from friends and relatives. If the retailer has some collateral security (e.g. house, land, lucrative business), he might be able to obtain some money from a bank in the form of a loan or an overdraft.

3. Small retailers obtain a great variety of goods in small quantities from wholesalers. They are not able to go direct to the manufacturers since purchases are not made in bulk.

4. The sole proprietor normally serves his customers with the help of some assistants. Therefore, he has the opportunity to get to know his regular customers well.

5. Small-scale retailers usually operate only one outlet, normally at a convenient location. Some very successful ones may open branches in other parts of the city.

6. Most small-scale retailers work very long hours and lack retailing know-hows.

1. STREET MARKETS:

Features:

·         These markets are operated by owners of shops who wish to increase their sales and by producers of agricultural goods.

·         These owners and producers rent stalls at a number of different markets on different days.

·         Mostly agricultural goods are sold in a fresh condition.

·         They are opened mostly on holidays.

·         The overheads are very low.

Advantages:

·         These shops are opened mostly on holidays to enable customers to do their shopping conveniently.

·         Customers can get goods very cheap as goods are sold mostly by producers of agricultural goods.

·         Customers can get goods in a fresh condition.

·         As overheads are low, the goods are sold very cheap.

Disadvantages:

·         Damaged, stolen or second-hand goods may be sold.

·         No credit facilities are allowed.

·         There are no after-sales services provided.

·         These markets are not opened everyday.

2. Hawkers

Hawkers are the small-scale traders who carry the goods by using some form of transport like handcart. They are also selling the goods like vegetables, fruits, etc.

3. Peddlers

Peddlers are the small-scale retailers who carry the goods on their heads or bags. They are selling the goods, which have low unit valve like pen, pencil, etc.

 

4. Vending Machines: -

Features:

·         These machines are placed at the entrance of public places like cinemas, parks and supermarkets.

• The customer has to insert the correct amount of money into the machine, press a button or turn a lever and the goods come out.
• Such machines are either bought or hired by the operator.
• Goods like cold bottled drinks, hot drinks, cigarettes, sweets, etc, are sold in this way.

Advantages to the Operator:

·         The machines provide great savings in labour cost.

• They can be located in convenient spots and do not need a shop.

Advantages to the Customer:

·         Customers can get these goods at any time.

• They do not have to depend on going to a shop and are relieved of pressure from shop assistants.

Disadvantages:

·                                 The cost of installing the machine is considerable.

·                                 The machine can be easily broken into and the money pilfered.

·                                 It causes an inconvenience to the customers if the machines break down.

·                                 Prices are high.

·         Machines are sometimes jammed and it is often difficult to find anyone that can help or to get a refund.

5. Market Traders

A local market is usually held on the same days each week and consists of number of stalls, which cover a wide range of products.

Advantages to the Customers: -

1. Prices are very low, because market trader has few expenses.
2. Bargaining can take place.
3. Goods are sometimes “Sold off” at cheaper prices at the end of a day.

Disadvantages to the Customers: -

1. It may be difficult to exchange goods.
2. In bad weather, shopping can be uncomfortable in open markets.