Service of Wholesalers to Manufacturers
Wholesalers perform services both to the manufacturer and retailer.
1. The wholesaler acts as an intermediary between the manufacturer and retailer. He is very close to the manufacturer.
2. Wholesalers are aware of the trend in the market. They pass on the market information to the manufacturer. They provide sales assistance to the manufacturer. Advertising and sales promotion activities are mostly undertaken by wholesalers.
3. They store goods in their own godown and make them available to those who need them. They also transport goods from their premises to the place of demand. Thus, they create time and place utility.
4. They stock goods when the demand rises. Thus, they keep prices stable.
5. Wholesalers are in direct contact with foreign buyers and help manufacturers export goods.
6. Wholesalers receive orders from retailers and place orders with the manufacturer for bulk purchase. Thus, the manufacturer is relieved from the botheration of selling in small quantities.
7. Wholesalers provide financial assistance to the manufacturer.
8. By their huge purchase, wholesalers make the manufacturer to concentrate fully on production.
9. Wholesalers advise manufacturers regarding product features, packaging, and promotional aspects.
Services of Wholesalers to Retailers
1. Wholesalers keep wide assortment of goods as stock. So, the retailer can purchase the product of his choice. Moreover, the retailer need not hold huge stock of goods. So, his inventory is kept at minimum.
2. The wholesalers enjoy the economies of bulk purchase. Moreover, they purchase at lower prices and store goods during the period of low demand. Wholesalers share a part of the benefits with the retailer.
3. The retailer may have limited resources and wholesalers extend credit facility to the retailer and thus come to their rescue.
4. Wholesalers advise retailers on the matters of vital interest.
5. If a retailer buys from the manufacturer, there will be inordinate delay in getting the supplies. Wholesalers avoid this problem by ensuring prompt delivery of goods out of the stock they maintain.
6. The wholesalers inform retailers about the new arrival of goods in the market.