Back to Course

SS1: COMMERCE - 1ST TERM

0% Complete
0/0 Steps
  1. Introduction to Commerce | Week 1
    3 Topics
    |
    2 Quizzes
  2. E-Commerce | Week 2
    3 Topics
  3. The Barter System | Week 3
    1 Topic
    |
    1 Quiz
  4. Occupation | Week 4
    1 Topic
  5. Services | Week 5
    2 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. Retail Trade / Home Trade | Week 8
    5 Topics
  9. Small Scale Retailing | Week 9
    6 Topics
  10. Large Scale Retailing | Week 10
    9 Topics
    |
    1 Quiz



  • Do you like this content?

  • Follow us

Lesson Progress
0% Complete

Definition of Tied Shops

Tied Shops are shops or houses owned and managed by manufacturers. These retail outlets are where the manufacturers/producers sell their products. Tied shops are confined to a single line of a commodity which is directly supplied by the manufacturers.

Advantages

1. Personal Contact: Customers come in direct contact with the manufacturers who are able to give them useful advice on the product.

2. High-Profit Margin: The trade and cash discounts that would have been given to wholesalers are retained thereby enabling them to make a high profit.

3. Adequate Monitoring of Sales: they ensure an adequate supply of goods and monitor the sales too.

4. After-sales services: They educate their customers and offer after-sales service to their customers.

5. Goods produced according to customer’s specification: Customers can approach the manufacturers to directly ask for a particular product and it will be done according to request.

Disadvantages

1. Hoarding of Goods: if there are no competitors, the tendency for them to hoard goods is high.

2. Limited Range of Goods: The customers may not have the choice for goods required due to a limited range of goods available.

3. Increased Selling Costs: The use of delivery vans attract high selling costs for the goods to customers.

4. Capital Tied Down: Capital tied down in stock due to only one distributive channel i.e.  from manufacturer to the final consumers.

Responses

Your email address will not be published. Required fields are marked *

back-to-top
error: