Distributive Trade II-The Wholesaler

A wholesaler is a trafficker who purchases goods in large amounts from the manufacturer and sells in small amounts to the retailers. The wholesaler is the mediator essential to the distribution of goods. There are several functions the wholesaler performs to the Manufacturer.

The wholesaler purchases goods in bulk or large volume from the manufacturer and sells in small amounts to the retailers. They finance product by icing prompt payment to the manufacturer and this will grease product processes. They give the necessary information to the manufacturer regarding the reailers’and consumers’ views about the products. The views may concern changes in taste, fashion and blights. The wholesaler provides warehousing installations to get relieve of stock- piling at the product point. Goods are stored then until they’re bought, hence it spurs the manufacturers to keep on producing. The wholesaler helps in carrying our product advertising and deals elevations and by so doing creates mindfulness for the products.

Likewise, they help to help price change by grazing the goods until they’re demanded. The wholesalers frequently give transport demanded in distribution and they shoot their vehicles to collect the goods from the manufacturers. brand distribution ┬áThe wholesaler can give credit installations to the manufacturer, occasionally by paying outspoken for the products. The wholesaler takes charge of the goods, thereby accepting responsibility for losses suffered in the course of distribution. The wholesaler takes charge of the goods, thereby accepting responsibility for losses suffered in the course of distribution. The wholesalers brand and package goods and entered from the directors before dealing to the retailers. They can advice the manufacturers on the request situations, eg, on the brand of goods demanded by consumers. The wholesaler carries out request exploration to give a two- way inflow of information relating to request situations between the manufacturer and implicit buyers. This assists in the marketing of current products and development of new bones.

Functions which the wholesaler performs to the retailer

  1. Provision of variety of goods The wholesaler enables the retailers to stock variety of goods, which they buy from different manufacturers.
  2. Provides Credit installations They allow retailers to buy on credit and pay for the goods latterly. This enables retailers to run their business with a small capital.
  3. To advise the retailer He can advise the retailer as a result of his expert knowledge of the goods. He can inform him about new developments in the request.
  4. Makes goods available in small volume Wholesaler carries large stock of goods and divides it into small amounts in order to vend to the retailers.
  5. Transportation services The wholesaler can help to transport or convey goods to the retailer’s shop.
  6. grading and packaging of goods He puts finishing traces to product by grading, imprinting or repackaging of products before dealing to the retailers.
  7. Price stability The manufacturer carries out this duty for the retailer by storing the goods in his storehouse and releases them according to the demand of the retailer.
  8. Advertising of goods By embarking on advertising or deals creation, the wholesaler can help in creating mindfulness for the products on behalf of the retailers.
  9. Threat bearing The wholesaler bears the threat of fall in prices on behalf of the retailer by buying and storing of products in large amounts.

In summary, the wholesaler provides a ling between the patron and the retailer as information concerning the product inflow from the patron through him to the retailer and hence a veritably important middle man in distributive trade and marketing.