Enumerate the services of wholesalers to manufacturers and retailers.
Services to manufacturers:
Wholesalers usually place an order with the producers in order to get the goods produced by him. Producers don’t have to go for marketing (their products) and can concentrate on efficient production of goods to earn profit. They do not have to own warehouses or go downs to keep their stock.
They remain in close touch with the retailers. Retailers provide them information on regular basis regarding the changes in consumer’s demand for products, competing products etc. With the help of such information, wholesalers place orders with producers. Even producers can regulate the production of goods according to the changing market conditions.
Manufacturers can continue their production on an even pace because wholesalers according to their expectations regarding future demand of products, place orders in advance even if the current demand is not high.
Sometimes, they even join the producers in advertising the produced goods. This proves to be of great advantage to both manufacturers and wholesalers.
Services to retailers:
Retailers can get small quantities of products through wholesalers, which is difficult to get from different manufacturers.
Small retailers run their business with small amount of capital. Because of this reason they cannot buy goods in large quantities. Wholesalers solve their problem by supplying them products as and when the need arises i.e. on regular and repeated basis. They do not require storage space because they do not keep goods in bulk.
Retailers are free from the risk of loss because they keep the goods in small quantities. It is the wholesalers who have to bear the risk that may occur due to the falling demand for products.
Wholesalers even provide goods to the retailers on credit. With the help of credit facility, they can pay the amount after sale or customer payment on account.
It is the wholesalers who introduce new products to retailers by displaying them in showrooms or through salesmen.
