Explain the services offered by wholesalers to manufacturers.



Q.8:- Explain the services offered by wholesalers to manufacturers.

 

Answer:-

The major services offered by wholesalers to the producers of goods and services are given as below

(i) Facilitating Large Scale Production Wholesalers collect small orders from number of retailers and pass on the pool of such orders to manufacturers and make purchases in bulk quantities.

(ii) Bearing Risk The wholesalers deal in goods in their own name, take delivery of the goods and keep them in their warehouses bearing risks of fall in prices, theft, spoilage, fire, etc.

(iii) Financial Assistance The wholesalers provide financial assistance to the manufacturers in the sense that they generally make cash payment for the goods purchased by them.



(iv) Expert Advice Wholesalers can advice the manufacturers about various aspects like customer’s tastes and preferences, market conditions, competitive activities and the features preferred by the buyers as they are in touch with retailers.

(v) Help in the Marketing Function The wholesalers take care of the distribution of goods to a number of retailers who, in turn, sell to large number of customers spread over a large geographical area.

(vi) Facilitate Continuity The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced.

(vii) Storage Wholesalers take delivery of goods when these are produced in factory and keep them in their godowns/warehouses.