Today we are going to give you information about wholesalers. We will tell you what service the wholesalers provide and what is the wholesalers. If you want to know all about them, read our full article. We will also tell you about what services the wholesaler provides to the manufacturer and what services the wholesaler provides to the retailer. If you want to become a wholesaler, retailer, or manufacturer, this information will very helpful for you.
“A wholesaler is a trader who purchases goods in large quantities from manufactures and resells them to retailers in small quantities. The wholesaler takes the goods from the manufacturers to the retailer. thus saving the retailer a lot of time and also a lot of money and it benefits both the manufacturers and the retailer. The wholesaler has all the information on the market as he knows the likes and dislikes of the people.
The following are the kinds of wholesalers who perform different kinds of services.
Brokers are those middlemen who do not buy or sell in their own names. They bring together the buyer and the seller and help them strike a deal for which they receive the remuneration known as brokerage. The title to the goods is directly transferred from the seller to the buyer.
The representative of Manufactures:
In fact, they are the employees of the company. They make contacts with the retailers, show the samples, and solicit orders from them. They sell the goods of their principal company. For example medical reps
They are large wholesalers who supply goods on a large scale to retailers. Jobbers act as if they are department stores for retailers providing the same types of services to them.
d) Sellers’ Agents:
They do not carry stock of merchandise and sell only a particular company’s goods under certain conditions.
They establish themselves within or outside the shop of the other owner and pay commission to him on the number of goods sold.
They are small wholesalers and supply their goods to retailers from their vehicles.
Importers and Exporters:
These wholesalers deal in foreign trade and make goods available that are short in their countries. Importers, on the other hand, buy in large quantities from abroad and make it possible for their countrymen to use the goods that are short or not available locally.
SERVICES OF WHOLESALERS TO PRODUCER / MANUFACTURER
Whole sellers are those middlemen who buy the goods in bulk quantities from the producers and sell to retailers. Whole sellers provide valuable services to producers o manufacturers. These are as follows:
- The direct link with retailers.
- Storage facility.
- Financial aid and credit burden.
- Market Information.
- Help in selling/wider distribution.
1. Direct Link with Retailers:
The wholesalers have direct contact with all types of retailers, big or small, whether they are located in a small village or a renowned place. For a producer, it is not possible to have a link with thousands of retailers. Moreover, dealing with each retailer individually looks unrealistic.
2. Storage Facility:
Manufacturers produce goods in huge quantities so that they can justify their production expenses. On the other hand, retailers cannot purchase bulks but wholesalers do. If there were no wholesalers, manufacturers would have to hire on rent or purchase their own warehouses to store these bulk stocks causing an increase in the cost of doing business. The wholesalers solve storage problems by purchasing in large quantities from manufacturers saving their precious capital in terms of warehouses rent.
3. Financial Aid and Credit Burden:
The wholesaler provides financial help to the producers by making advance payments to the producer. While on the other hand wholesalers sell goods on credit to various retailers.
4. Market Information:
Wholesalers have a link with the retailers who have direct contact with the public Through retailers, the wholesalers get fresh information about the market, likes & dislikes, competition, etc. which they pass on to manufacturers. The manufacturers adjust and update their production policies accordingly.
5. Time-saving & wider distribution:
By the services of wholesalers, the producers are in a position to widely distribute the goods on the market. Selling to a hundred wholesalers is much easier than selling to thousands of retailers. In dealing with wholesalers, his much time is saved.
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SERVICES OF WHOLESALERS TO RETAILERS
Wholesalers also provide invaluable services to retailers, which are as follows:
- Convenience in buying
- Right time delivery
- Credit facility
- Storage services
- Better and greater variety of various producers
Convenience in Buying:
When retailers purchase from wholesalers, their many purchasing problems are automatically solved. Retailers are able to purchase a maximum variety of goods from all the producers spread across the country or the world. Retailers don’t have to travel abroad or through the country. Their traveling time and cost are saved.
Right Time Delivery:
Wholesalers are in a far better position to deliver goods to retailers in time than manufacturers. Moreover, wholesalers are nearer to the retailers; therefore prompt delivery is no problem.
3. Credit facility:
Usually, producers do not sell on credit. But wholesalers do. When retailers purchase from the wholesalers rather than the producer, they get credit facilities.
4. Storage services:
If the retailer purchases directly from producers, he will have to buy in large quantities. These larger quantities need specious 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.
5. Better and Greater variety:
From a few wholesalers in one market, the retailer can purchase goods of numerous manufacturers whether local, national, or international. The collection of numbers of brands is 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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