Can You Explain Consumers Cooperative Society?

Consumer's cooperative societies:
In the capitalist society there is a long chain of middleman from the producers of a commodity to the consumers. The consumer's cooperatives are found to eliminate the handsome profit of the middleman. They make the supply of required goods primarily to its members in a particular locality. The member shop at the coop gets good quality products at fair prices and thus raises their individual income.

The consumer's cooperative purchases the goods in bulk from the producers or the whole sale dealers and supply directly to the members on demand. The coop is managed by members themselves. The profit is distributed to the members in the proportion to the purchases made by a member in a particular trading year. The members are issued coupons at the time of purchase of commodities which are counted at the end of the trading year.

The performance of cooperate society is not satisfactory in developing countries including Pakistan due to the following reasons:
1. These societies lack capital.
2. Cooperative spirit is missing among the members.
3. There is no particular supply of goods to the coop.
4. The goods are mostly sub standard and lack variety.
5. The person appointed for selling the commodities lack initiative and donot treat the consumers properly.
6. There are complaints of wrong billing.