Mobile shops, like itinerant traders, move from town to town or village to village selling their goods.
They have vehicles that they have converted into a shop from which customers can buy their goods. They visit different towns at regular intervals.
Advantages of Mobile shops
- They require little capital to start and operate and hence are formed easily.
- They are convenient because they bring goods closer to the people.
- The business is flexible in that it can move from place to place.
- They can also change from one line of business to another easily hence they can be able to meet customers changing tastes and preferences.
- Few legal formalities are required hence easy to start and fewer formation expenses.
- They usually do not suffer bad debts because they sell in cash hence they can always continue to be in business in future.
Disadvantages of Mobile shops
- The traders get tired because of moving from one place to another while carrying goods.
- The business is affected by bad weather conditions, a rainy weather may force traders to pose trading to allow the rain to subside equally on a sunny day leading to heavy sweating and fatigue.
- The trader sells a limited range of goods hence a customer’s choice is limited to the goods available hence denying the consumer sovereignty.
- It is difficult to transport goods from one place to another, especially heavy large-size goods.
- Mobile shop traders do not offer a guarantee, in case items are to be found defective hence the customers suffer liability alone hence risk.
- They are constantly in conflict with the local government especially for operating in restricted areas next to government offices such as the office of the governor and sometimes bus stages.
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