Wholesaling: Marketing and Wholesaler
Chapter 11 – Channel Institutions: Wholesaling
Definition of Wholesaler * The wholesaler, or the wholesale trader, is a trader, who purchases goods in large quantities from manufacturers and resells to retailers in small quantities.
Functions of Wholesaler
A summary of the functions of wholesaler is given below. * Sales and promotion of chosen company products * Buying the assortment of goods to be handled * Breaking bulk to suit customer requirements * Storage and protection of the goods till they are sold out * Grading and packing of goods of the commodities * Transportation of the goods to the customers * Financing the buying of the goods and extension of credit to the customers. * Bearing the risks associated with the business * Collecting and disseminating market information to suppliers and customers.
Wholesaling functions to Producer Supplies * Order collecting and marketing agency for the producer * The manufacturer is able to produce on a large scale as the wholesaler places truckload or container load orders on the manufacturers * Wholesaler places orders in advance * Manufacturers can thus focus on the quality and quantity to be produced * The wholesaler is in touch with the market and understands its pulse extremely well * Helps in maintaining price stability
Wholesaling Functions for Retailers and other Customers * A retailer does not have the financial resources or the space to keep the full assortment of products required by his customers at all times. * By getting the stocks when required, he manages his own inventory well, thereby reducing the risk of carrying extra stocks * Wholesalers deliver goods promptly * Wholesaler delivers the best value for the goods handled by him * The retailer gets info.about new products, promotions and the like in advance form the wholesaler. * The freelance wholesaler usually handles the goods of a large number of
Definition of Wholesaler * The wholesaler, or the wholesale trader, is a trader, who purchases goods in large quantities from manufacturers and resells to retailers in small quantities.
Functions of Wholesaler
A summary of the functions of wholesaler is given below. * Sales and promotion of chosen company products * Buying the assortment of goods to be handled * Breaking bulk to suit customer requirements * Storage and protection of the goods till they are sold out * Grading and packing of goods of the commodities * Transportation of the goods to the customers * Financing the buying of the goods and extension of credit to the customers. * Bearing the risks associated with the business * Collecting and disseminating market information to suppliers and customers.
Wholesaling functions to Producer Supplies * Order collecting and marketing agency for the producer * The manufacturer is able to produce on a large scale as the wholesaler places truckload or container load orders on the manufacturers * Wholesaler places orders in advance * Manufacturers can thus focus on the quality and quantity to be produced * The wholesaler is in touch with the market and understands its pulse extremely well * Helps in maintaining price stability
Wholesaling Functions for Retailers and other Customers * A retailer does not have the financial resources or the space to keep the full assortment of products required by his customers at all times. * By getting the stocks when required, he manages his own inventory well, thereby reducing the risk of carrying extra stocks * Wholesalers deliver goods promptly * Wholesaler delivers the best value for the goods handled by him * The retailer gets info.about new products, promotions and the like in advance form the wholesaler. * The freelance wholesaler usually handles the goods of a large number of