by • 10/06/2011 • B.COM PART 1 Introduction to BusinessComments (0)927

Discuss services of wholesalers to retailers.


Wholesalers also provide invaluable services to retailers, which are as follows:

  • Convenience In Buying:

When the retailer purchases from wholesalers his many problem of purchasing are automatically solved. He is able to purchase maximum variety goods of a number of producers spread across the country or the world. He doesn’t have to travel abroad or through the country. His traveling time and cost are saved.

  • Right Time Delivery:

Wholesalers are in a far better position to deliver goods in time than manufacturers. Moreover, wholesalers are nearer to the retailers, therefore, prompt delivery is no problem.

  • Loan Or Credit:

Usually producers do not sell on credit. But wholesalers do. If retailers purchase from the wholesalers rather than the producer, they can get credit on the goods purchased.

  • Merchandising Aid:

Manufacturers don’t have experience in shop keeping. Therefore they are not in position to provide any advice on merchandising or methods of shop keeping. But wholesalers do have merchandising experience and therefore, are in position to give advice to retailers on various shop keeping methods and techniques, such as general display, window display, decoration, layout of counters and cupboards, lighting, accounting, and salesmanship.

  • Storage Services:

If the retailer purchases directly from producers, he will have to buy in larger quantities. These larger quantities need spacious warehouses or stores which are costly and require additional capital. When the retailer purchases from wholesalers he may buy in smaller quantities which do not require additional storage space. In this way he is relieved of the additional capital or expenses necessary for stores or warehouses.

  • Better And Greater Variety:

From a few wholesalers on one market, the retailer can purchase goods of numerous manufacturers whether local, national, or international.

The collection of numb of brands in not possible if the retailer purchases directly from manufacturers who are widely spread all over the country in far-off-places- as he cannot approach all of them individually.

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