by • 10/06/2011 • B.COM PART 1 Introduction to BusinessComments (0)727

Q4- What do you know about retailers. Discuss services of retailers to Consumer, Wholesaler and Producer.


Retailer are those middlemen who have a direct contact with final consumer and sell them in small quantities. Retailers may buy directly from the manufacturer or his agent, distributor or from the wholesaler, who sell in bulk quantities.


The retailer performs the following services for the consumer

  • Easy Access:

Retailers are easily accessible since they form their business on or near residential areas. The customer can buy with the minimum of efforts, has not to travel a long distance, and can buy from the nearest point of sale.

  • Credit Facility:

Retailers of all kinds offer their customer credit service. Many of them extend monthly charge account on which no interest is charged.

  • Variety:

The retailer emphasize on the variety. He doesn’t concentrate on quantity and prefers variety for offering to his customer. Thus customers have an edge to buy from a retailer goods of any company.

  • Home Delivery:

Most of retailers offer the customer home delivery service. He can place the order on phone or visit the shop and may ask for home delivery. This practice is usually common in grocery business.

  • Sales Return:

Many retailers, especially hose selling convenience or staple goods, accept sales return from their customer.

  • Cash Discount:

The retailer allows a cash discount to his customer who buy on cash. The discount may range from two to ten percent. This practice is widespread in medicine.

  • Small Amount:

The retailer can sell the goods in the smallest possible quantity of goods. The customer enjoying this facility saves money, space, and maintenance cost. The facility of buying in any small quantity makes it possible for him to buy fresh goods to fulfill his immediate need.


The existence of retailers offers the following services to the wholesaler and manufacturer.

  • Wide Distribution:

Retailers are scattered throughout the city, therefore, the goods of manufacturers reaches every nook and cranny. In the absence of retailer it would not possible for the manufacturer to sell his goods to cover a large area.

  • Advertising:

Retailers play an important role in making the goods popular with customers.

  • Production Volume:

Manufacturer’s production volume are dependent on their sales volume at the retail level. If the retail sales go up the manufacturer will plan to raise his production amount and vice versa.

  • Guarantee/ Warranty:

Implementation of guarantee or warranty offered by the manufacturer is only possible by the cooperation of retailers.

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