One Price Shop
The one price shop refers to all of the shops where all of the goods are sold at the same price. It is a type of retail shop where a large number and a variety of articles necessary for our everyday use are traded. It is the shop where all goods of different types are sold at the same price. Such traders normally shout on the public places, buses, rods etc. The peculiarity of the shop is that the price of all the commodities dealt therein is one and fixed-irrespective of the nature and quality of the goods. With a one price policy, the customer knows that negotiation is not possible.
A one price policy is a strategy in which the seller offers the same price to every customer. All of their goods have different qualities even though they are of the similar price. They have normally goods of different qualities and of low prices. It is the opposite of a differential pricing approach or a variable price policy. But price for them is fixed in a manner that all the goods can be sold at the same rates. There are many large stores in the US that are one-stop shops: they have groceries, furniture, healthcare items, clothing, and other items. On all such shops, customers can purchase the goods as per their needs.
Characteristics of One Price Shops:
- Different products are available at the same price.
- The goods dealt in care of low price and meant for common people.
- Goods are sold on a cash basis.
- There is no bargaining between the seller and the purchaser as the prices of the commodities are fixed.
- The shops are usually situated in the busy shopping centers near railway stations or bus stands.
Advantages
- There is a uniform return from each sale. This assures certain profits.
- These shops are very helpful in catering to the needs of poor people as goods are available at low prices.
- There is no waste of time negotiating prices. In other words, sales personnel can achieve each sale more rapidly.
- The cost of operation and advertisement is minimum.
- There is no risk of bad debts as the goods are sold on a cash basis.
- Lesser capital is needed to start a one price shop.
- These shops avail of the economies of large scale purchasing.
Disadvantages
- Usually cheaper and low quality goods are sold by these shops.
- The seller does not have flexibility. Sales personnel are stuck.
- These shops are not suitable for rich people.
- There is a risk of losing valuable customers. In other words, some people would have bought if the seller had offered a better deal.
- The loud voice with which the hawkers sell their products in different localities disturbs the people.
- The margin of profit is low in case of one price shops.
- Minimum and unscientific advertising is another drawback of these shops.
