• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Entrepreneurship
  • Employee Guide
  • Marketing and Sales
  • Space
  • Investment & Earning
Googlesir Logo




  • Home
  • Entrepreneurship
  • Employee Guide
  • Marketing and Sales
  • Space
  • Investment & Earning

14 Arguments ‘Against’ and ‘In Favour’ of Elimination of Wholesalers

Should wholesalers be removed? Some critics of wholesalers are of the view that wholesalers should be removed. They are of the opinion that the Institution of wholesalers is the useless and avoidable link between the manufacturers and retailers and therefore. It should be eliminated immediately.

Arguments 'Against' and 'In Favour' of Elimination of Wholesalers
Arguments ‘Against’ and ‘In Favour’ of Elimination of Wholesalers

Before coming to the conclusion on this question, we shall study the arguments against wholesalers and in favor of wholesalers.

The details in this regard are as follows:

Arguments Against Wholesalers

Critics of wholesalers are of the opinion that there is no need for wholesalers in marketing the products.

They argue that the Institution of wholesalers increases channel of distribution unnecessarily. They further argue that it increases the cost and prices of a product.

Therefore, it must be eliminated immediately keeping in view the interests of manufacturers and Consumers.

Important arguments of the critics of wholesalers are as under:

1. There is No Need of the Services of Wholesalers

The very first argument of critics of wholesalers is that particularly there is no need for services of wholesaler.

They argue that most of the manufacturers use their own brand and Trademark for their products.

It has also been the experience that the importance of advertisement and sales promotion is being realized by the manufacturers and they are stressing upon advertisement and sales promotion.

It has enabled manufacturers to supply their goods direct to the retailers, and therefore, there is no need for the services of wholesalers.

Related: 31 Factors Affecting the Choice of Distribution Channels (Explained).

2. Trend of Direct Marketing of Goods from Producers to Consumers is Developing during Recent Years

It has been the experience during recent years that multiple shops, departmental stores, and Super Bazar are becoming very popular among the consumers.

Several manufacturers have started there own multiple retail shops of such as Apple, Samsung store, Nike store, Puma Store, etc.

These shops have proved their success, and therefore there is no need for the services of wholesalers.

3. The Trend of Authorised Dealers is Developing During Recent Years

It has also been seen that most of the manufacturers have appointed their authorized dealers in different parts of the country.

These dealers get goods direct from the manufacturers and sell these goods to the consumers.

This type of marketing is becoming more and more popular day by day and most of the producers are diverting to this practice.

Success and growth of this practice also prove that there is no need for wholesaler.

Related: Logistics or Physical Distribution: Definitions, Characteristics, Objectives.

4. Wholesales are Responsible for Increasing the Cost of Product

As the cost of distribution is an important part of the total cost of a product, the Institution of wholesalers adds to this cost because the commission paid to the wholesalers or their profit margin is included in the price of the commodity.

Thus, the existence of wholesalers proves an additional burden for the consumers.

5. Wholesalers Create a Long Chain Between Producer and Consumers

Producers produce goods and services and the consumers consume them. Any middleman between manufacturers and Consumers creates a distance between these two.

More be the middleman, the longer will be the chain between manufacturers and Consumers.

The result is that the manufacturers are not in a position to know the needs, wants and grievances of consumers, therefore, efforts should be made to cut sort this chain.

6. Wholesalers Encourage Black Marketing

It has also been the experience that wholesalers encourage black Marketing by storing all the available supply of goods and them selling these goods at undue prices. It exploits consumers.

The situation becomes more aggravated if the commodity is an essential commodity.

Related: 9 Advanced Strategies for Building Maximum Customer Satisfaction.

7. Wholesalers Do not Serve MMuch to the new Manufacturers

It has been the experience that the manufacturers do not take any interest in dealing with the new products.

They prefer to deal with popular products. It creates a problem for new manufacturers.

8. Development of Means of Transportation

Means of transportation have developed a very high rate during recent years. Development of means of transportation and solved the problem of time and distance.

Now the retailers can purchase the goods directly from manufactures and manufactures can supply their goods in all parts of the country.

Related: What is Marketing Mix? 4 Ps of Marketing Mix (Explained).

9. Wholesalers Develop their Own Brand and Trademark

Critics of wholesales are of the opinion that many wholesalers develop their own brand and trade name, and thus, they earn goodwill in the market at the cost of producers.

10. Wholesalers are Interested in High Profits

The wholesalers are generally interested in earning high profits.

They take interest in selling the good only of those manufacturers who offer them a higher rate of commission even if these goods are not of high quality.

This tendency of wholesalers is against the interest of both the manufactures and attendance retailers.

Related: 21 Main Features of Marketing (Explained).

Arguments in Favour of Wholesalers

The about discussion gives an impression that the wholesalers are completely useless In the channels of distribution.

They increase the cost of goods and exploit the manufacturers on one hand and retailers on the other.

can wholesalers be eliminated from chain of distribution
can wholesalers be eliminated from chain of distribution

Therefore they should be eliminated as soon as possible. But it is not very correct to take such a hard decision because the services of wholesalers cannot be undervalued.

Following are the arguments in favour of wholesalers:

1. To Take Over the Liabilities of Manufacturers

Wholesalers take over most of the liabilities of manufacturers. They purchase the goods manufactured by manufacturers in the large quantities and store these goods until these are sold to the retailers.

They Purchase these goods on cash payment, and thus, solve the financial problems of manufacturers to some extent.

Therefore, elimination of wholesalers would be a problem for the manufacturers.

Related: Top 12 Benefits of International Expansion of Business.

2. To Take Over the Botheration for Retailers

Wholesalers relieve retailers from many botherations. Wholesalers collect many varieties of products from different manufacturers, and thus, provide an opportunity for the retailers to make their selections.

Wholesalers sell goods to the retailers on credit and thus solve their financial problem to some extent.

Thus, elimination of wholesalers will be a problem for the retailers.

3. Wholesalers Make the Process of Distribution Easy and Quick

Wholesalers are an important link between manufacturers and retailers.

They make the process of distribution very convenient and fast. They collect goods from different manufacturers and store these goods in the warehouses.

They sell these goods to the retailers according to their needs.

Thus, wholesalers maintain an equilibrium between demand and supply of a product.

Related: Top 5 Basics of Successful Entrepreneurship (Must Know).

4. Wholesalers have Sound Sales Organisation

Sales organization of most of the wholesalers is very sound. They collect all the necessary information in respect of the market.

They also undertake the responsibility of conducting market surveys from time to time.

They supply goods to the retailers according to their needs. Thus, the wholesalers provide valuable services both to the manufacturers and retailers.

Conclusion

The above discussion Makes it clear that the existence of wholesalers in the channel of distribution is very controversial. Some of the Scholars strongly oppose their existence. 

They argue that wholesalers increase the cost of distribution and the price of the product. Their necessity has been further minimized with the development of large scale retailing, means of transportation and multiples shops.

Bonus: 29 Important Services of Wholesaler in Marketing (Explained).

Critics of wholesalers are of the view that wholesalers are the parasites and an useless link in the chain of middlemen from the producer to the consumers, and therefore, these must be eliminated as soon as possible. The wholesaler is an unnecessary chain between the producer and consumer’.

On the other hand, The Scholars in favour of wholesalers argue that wholesalers render some valuable services to the manufacturers, retailers, and Consumers.

If they are eliminated, it will create many problems for manufacturers and retailers.

Therefore, it is not very correct to decide to eliminate the wholesalers.

The need is to have proper control over their activities through proper legislations and the dependence of Producers and retailers on the wholesalers should be minimized. What is the difference between production and manufacturing?

Thus, now you know the Arguments ‘Against’ and ‘In Favour’ of Elimination of Wholesalers.

Share Now:

  • Share
  • Click to share on WhatsApp (Opens in new window) WhatsApp
  • Tweet

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar







Is your SEO strategy AI-ready? Learn how to prepare for AI-driven search today.

Struggling with digital challenges? Digiteins offers comprehensive tech solutions to future-proof your business.

How to Leverage Entrepreneurship Skills for Career Growth and Job Success

Why Your Supermarket is Not Growing: Key Factors to Consider

How to Get Free Money to Start Your Business

15 Key Characteristics of Business Transformation: Explained

16 Key Benefits of Business Transformation (with Examples)

17 Components of Business Transformation: A Comprehensive Guide

15 Different Types of Business Transformation: Explained

25 Benefits of Starting a Home Cleaning Business

21 Benefits of Starting a Dog Walking or Pet Sitting Business

20 Key Benefits of Starting a Car Cleaning Business

27 Key Benefits of Starting a Lawn Care Business: Explained

20 Key Benefits of Starting a Proofreading Business: Explained

How to Leverage Entrepreneurship Skills for Career Growth and Job Success

How to Leverage Entrepreneurship Skills for Career Growth and Job Success

March 31, 2025 By Jennifer theron Leave a Comment

In today’s fast-paced and ever-evolving job market, traditional career paths are no longer the only way to achieve professional success. Many individuals are turning to entrepreneurship not as a distinct path but as a set of skills that can be leveraged in their current careers. Entrepreneurship is no longer confined to those who own businesses; […]

blue and white labeled box

Why Your Supermarket is Not Growing: Key Factors to Consider

June 10, 2024 By Jennifer theron Leave a Comment

Introduction to Supermarket Growth Challenges The supermarket industry, while robust and expansive, is not immune to growth challenges. Supermarkets face a myriad of obstacles that can hinder their expansion and overall success. Understanding these growth challenges is essential for supermarket owners and managers who aim to devise effective strategies to overcome them and ensure sustainable […]

man wearing red and black shirt

How to Get Free Money to Start Your Business

June 2, 2024 By Jennifer theron Leave a Comment

Introduction to Free Funding Options Starting a business often requires significant capital, which can be a daunting hurdle for many aspiring entrepreneurs. The concept of free funding, however, offers a promising solution to ease this financial burden. Free funding refers to monetary support that does not require repayment, allowing new business owners to allocate resources […]

characteristics of business transformation

15 Key Characteristics of Business Transformation: Explained

October 19, 2023 By Jennifer theron Leave a Comment

Business transformation is a complex and multifaceted endeavor that requires organizations to navigate a changing landscape while maintaining a clear vision for the future. It is both a strategic imperative and an operational challenge that involves not only reshaping structures and processes but also managing people and cultural changes to achieve sustainable growth and competitiveness. […]

benefits of business transformation

16 Key Benefits of Business Transformation (with Examples)

October 19, 2023 By Jennifer theron Leave a Comment

The need for continuous adaptation and improvement has become a critical imperative for enterprises of all sizes. The process of reshaping and revitalizing a company to meet changing market demands and emerging technologies is known as business transformation. This strategic undertaking can deliver a multitude of benefits that not only enhance an organization’s competitiveness but […]

components of business transformation

17 Components of Business Transformation: A Comprehensive Guide

October 19, 2023 By Jennifer theron Leave a Comment

Business transformation is a term that has gained significant prominence in recent years. It is not merely a buzzword, but rather a strategic imperative for organizations seeking to thrive in today’s rapidly evolving business landscape. The concept of business transformation encompasses a wide range of activities and strategies aimed at reshaping an organization to better […]

types of business transformation

15 Different Types of Business Transformation: Explained

October 19, 2023 By Jennifer theron Leave a Comment

In the ever-evolving landscape of modern business, staying competitive and relevant is a constant challenge. To thrive and succeed, organizations must be agile, adaptable, and ready to embrace change. This is where business transformation comes into play. Business transformation encompasses a wide range of strategic initiatives that organizations undertake to improve their operations, expand their […]

    Footer

    • Home
    • Entrepreneurship
    • Employee Guide
    • Marketing and Sales
    • Space
    • Investment & Earning

    Search

    Join Us

    • Home
    • Contact Us
    • Privacy Policy
    • About US
    • Sitemap

    © 2025 Copyright - Googlesir.com