A wholesaler is a vital link between manufacturers and retailers. They purchase goods from different manufacturers and sell these goods to retailers. Thus, wholesalers render very important services both to the manufacturers and retailers.
Some of the important services rendered by manufactures are divided into three parts:
- Wholesaler Services to the Manufacturers
- Wholesaler Services to the Retailers
- Wholesaler Services to the Consumers
The details in this regard are as follows:
Wholesaler Services to the Manufacturers
The Wholesalers render the following services to the manufacturers:
1. Facilities of Distribution
Wholesalers take over the liability of manufacturers to distribute the goods produced by them.
Thus, they relive manufacturers from this liability. Challenges Facing Wholesale Distributors.
2. Helpful in Concentrating upon Production
As most of the liabilities of manufacturers are taken over by wholesalers, Manufacturers can concentrate upon production.
They have not to bother about distribution.
3. Helpful in Large Scale Production
Wholesalers help in increasing the sales of goods they purchase the goods from manufacturers in large quantities.
It enables manufacturers to produce a large scale. Large scale production helps the manufacturers in reducing the cost of production considerably.
4. Benefit of Advertisement
Generally, the wholesalers advertise on their own expenses.
It helps manufacturers in increasing the sales of their products.
In this case, if manufacturers also advertise for their products, it re-doubles the effect of advertisement.
5. Helpful in Standardization and Grading
Some of the wholesalers sort out the products into different grades.
These grades are developed on the basis of common characteristics or quality or nature products.
It has manufacturers to adopt the policy of standardization and grading.
6. Helpful in Expanding the Market
Wholesalers distribute the goods produced by the manufacturers in different segments of the market.
They try to sell these goods in new markets also. It is the wholesaler who makes the goods produced by a manufacturer available in all the parts of the country.
Thus, wholesalers help in expanding the market for products.
7. Helpful in Price Determination
As wholesalers are in close touch with the retailers, they can be a great help in determining the price of products.
8. The Facility of Raw Materials
Wholesalers provide the facility of raw materials also to the manufacturers.
Different types of raw materials are collected by wholesalers from different manufacturers and sold to the manufacturers of consumer goods.
9. Facility of Storage
Wholesalers take over the liability of manufacturers of storing the goods also.
They store the goods manufactured by manufacturers in their own godowns and thus, the manufactures are relieved from the liability of storing the product.
10. Financial Help
Wholesalers provide financial help also to the manufacturers because they purchase goods in large quantities and generally on cash payment.
Some wholesalers make advance payment also while placing their orders.
11. No Need for the Manufacturers to have their Sales Organisation
Wholesalers relieve manufacturers from the botheration of having their own sales organization because they purchase the goods manufactured by manufactures and sell them to the retailers through their own sales organization.
Wholesaler Services to the Retailers
Wholesalers provide some very important and useful services to the retailers.
These services may be explained as under:
1. Financial Assistance
Financial resources of retailers are generally Limited wholesalers provide valuable financial assistance to them by selling the goods to them on credit.
It helps the retailers in maintaining rotation of their working capital.
2. Benefit of Advertisement
Wholesalers generally, advertise for the products dealt with the by them.
Such an advertisement is very helpful to the retailers because they get a direct benefit from it. It increases their sales and profits.
3. Helpful in Marketing Selection
A Wholesaler generally, maintains a large variety of a product. It helps retailers in making this selection of variety.
4. Valuable Consultation
Wholesalers advise retailers on their marketing problems from time to time.
The advice of wholesalers in very useful for the retailers in solving their marketing problems and in increasing their sale.
5. Stability in Price
Wholesalers purchase the goods in large quantities and sell them to retailers in small quantities.
Thus, the risk of fluctuations in price in borne by the wholesalers. This helps retailers in stabilizing their prices.
6. Helpful in Purchasing the Goods according to Needs
As the goods are purchased by wholesalers in large quantities and sold to the retailers in small quantities, the retailers get the facility of purchasing the goods in the quantity of their need.
7. Facility of Packaging
The goods are packed generally by the wholesalers. They packed the goods in different sizes according to the specifications suggested by retailers.
It helps retailers in selling these goods to consumers in different sizes and quantities.
8. The Facility of Sorting, Grading, and Standardization
The activities of sorting, grading, and standardization are performed by the wholesalers.
It relieves the retailers from this liability.
9. Benefits of Specialisation
Generally, the wholesalers deal with the products of a particular product line or a particular producer.
In this manner, the wholesalers are generally the specialists of their line.
Retailers get advantage of their ability, efficiency, and experience.
10. Facility of Transportation
Generally, the wholesalers provide goods to the retailers at their shops.
It relieves the retailers from the liability of transportation.
11. Helpful in Concentrating upon Sales
As almost all the liabilities of retailers are taken over by wholesalers, the retailers can concentrate upon selling.
They can employ their resources on creating, maintaining and increasing the demand for their products.
Wholesaler Services to the Consumer
Though the wholesalers are not in direct touch with the consumers yet they offer some valuable services to the consumers.
Some of the services provided by wholesalers to the consumers are as under:
- Wholesalers provide necessary information to the consumers about new products introduced in the market. They do so by their advertisement programs.
- Wholesalers distribute the goods to the retailers according to the needs, wants and requirements of consumers.
- Wholesalers maintain a large variety of a product. Thus, the wholesalers help in increasing the variety to be maintained by retailers, and Thus, the consumers get the full range of a product.
- Wholesalers undertake market research also. This is also beneficial to consumers.
- Wholesalers maintain equilibrium in the demand and supply of products.
- Wholesalers help in stabilizing the prices of products in the market.
- Wholesalers help the manufacturers in producing goods on a large scale. It reduces the cost of production. It provides the goods to the consumers at most reasonable prices.
Thus, now know the services of wholesaler.