Advantages and disadvantages of itinerants retailers
Dear Student,
Here is your answer,
Itinerant means travelling from place to place. Itinerant retailers have no fixed place of business. They move from place to place for selling their goods to the consumers. Itinerant sell in small quantities. They invest a very small amount of capital.
ADVANTAGES
1) LESS CAPITAL: Itinerant retailers have to move from one place to another , so they don't have to invest huge capital.
For example: Hawkers and paddlers have to buy just a hawker and some amount of goods which they can carry.
2) SERVICES TO DOOR STEPS: These retailers provides their goods and services at the doors of the customers.
For Example: A vegetable seller sells vegetables at the doors of the customers
.3) ELASTICITY: The goods they sells are usually perishable in nature and whose substitutes are available in abundance. Therefore these goods are highly elastic
4) ECONOMY: The goods which itinerants sells are economically cheaper which even a low class of society can buy. For Example: Non branded goods.
DISADVANTAGES:
1) HIGHER PRICES: These goods may be sometimes of higher prices because itinerants also adds their labour of carrying those goods with the price of the goods
2) LOW QUALITY: The goods carried over by the itinerants are of low quality and hence Non branded goods. For Example: Cheap Jacks
3) LOW SALES: As these retailers sells good for Low income group and many upper class society do not want to buy these goods as they prefer fixed shops. These retailers do not provide the guarantee for the commodity they sells, this is also the reason for less sales.
4) LACK OF STORAGE: These retailers do not have a fixed place, daily they have to move from one place to another. Therefore they do not have a particular place to store their goods
Regards.
Here is your answer,
Itinerant means travelling from place to place. Itinerant retailers have no fixed place of business. They move from place to place for selling their goods to the consumers. Itinerant sell in small quantities. They invest a very small amount of capital.
ADVANTAGES
1) LESS CAPITAL: Itinerant retailers have to move from one place to another , so they don't have to invest huge capital.
For example: Hawkers and paddlers have to buy just a hawker and some amount of goods which they can carry.
2) SERVICES TO DOOR STEPS: These retailers provides their goods and services at the doors of the customers.
For Example: A vegetable seller sells vegetables at the doors of the customers
.3) ELASTICITY: The goods they sells are usually perishable in nature and whose substitutes are available in abundance. Therefore these goods are highly elastic
4) ECONOMY: The goods which itinerants sells are economically cheaper which even a low class of society can buy. For Example: Non branded goods.
DISADVANTAGES:
1) HIGHER PRICES: These goods may be sometimes of higher prices because itinerants also adds their labour of carrying those goods with the price of the goods
2) LOW QUALITY: The goods carried over by the itinerants are of low quality and hence Non branded goods. For Example: Cheap Jacks
3) LOW SALES: As these retailers sells good for Low income group and many upper class society do not want to buy these goods as they prefer fixed shops. These retailers do not provide the guarantee for the commodity they sells, this is also the reason for less sales.
4) LACK OF STORAGE: These retailers do not have a fixed place, daily they have to move from one place to another. Therefore they do not have a particular place to store their goods
Regards.
