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SS1: COMMERCE - 1ST TERM

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  1. Introduction to Commerce | Week 1
    3 Topics
    |
    1 Quiz
  2. E-Commerce | Week 2
    1 Topic
    |
    1 Quiz
  3. History of Commerce | Week 3
    3 Topics
    |
    1 Quiz
  4. Occupation I | Week 4
    1 Topic
  5. Occupation II | Week 5
    3 Topics
    |
    1 Quiz
  6. Production, Division of Labour, Specialization & Exchange I | Week 6
    3 Topics
  7. Production, Division of Labour, Specialization & Exchange II | Week 7
    2 Topics
    |
    1 Quiz
  8. Home Trade | Week 8
    6 Topics
  9. Small Scale Retailing | Week 9
    6 Topics
  10. Large Scale Retailing | Week 10
    9 Topics
    |
    1 Quiz



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Lesson 8, Topic 5
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Factors to Be Considered in Setting up a Retail Trade

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Below are some factors to be considered in setting up a retail trade;

1. Capital: It is capital that determines the form and size of the business. Capital is one of the most important factors to be considered in a business setting.

2. Experience: A person who wants to venture into any business must first acquire experience from those who are already in that business.

3. The Site of the Business: The site of the business one wants to take, determines the location for such business. People selling the same products usually site their shops in one location for effective competition to take place.

4. Source of Supply: Where and how to get the goods to be sold should also be considered when starting a retail trade. Consideration should be made whether the goods should be sourced from the producers/manufacturers or the wholesalers.

5. Nature of Goods: The choice of goods to sell, for example, fitness accessories, or clothes.

6. Methods of Advertising: A retailer should consider the basic way to bring his business to the awareness of the potential customers.

7. Terms of Trade: The retailer, should consider whether his goods are to be sold on a cash and carry basis or on credit or both which of course will depend on the amount of his capital.

8. Hours of Business: The intending trader should consider the time to open and close for business. Some goods are sold better in the morning while others in the evening etc.

9. Prices: The retailer determines the price to sell his goods based on the cost price. He knows the best price policy to adopt in order to make a profit and not to send the customers away.

10. Availability of Infrastructure: Before setting up a retail business a retailer should consider the availability of infrastructure like electricity, water, network service, how good the roads are, etc.

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