A wholesaler provides services to both manufacturers and retailers. State two services towards each group.
A wholesaler provides services to both manufacturers and retailers. State two services towards each group.
A wholesaler provides following services to the manufacturer:
(a) Economies of Scale: Wholesalers help the manufacturers to avail the benefits of large-scale operations as they buy goods in large quantity. They buy in bulk which enables the manu-facturer also to produce in bulk & avail benefits of largescale production.
(b) Sales Promotion: Wholesalers employ a sales force to reach retailers located in far corners of the country The sales person of wholesaler perform the task of persuading the retailers to display and sell the goods at their retail outlets.
Services of Wholesalers to Retailers:
(a) Regular Supply: Wholesalers maintain a large stock of goods. Therefore whenever a retailer requires goods, these can be immediately supplied from the warehouse of wholesalers. Thus wholesaler acts as a warehouse keeper of the retailer.
(b) Financing: Wholesalers sell good to retailers on credit. Therefore retailers need not maintain large working capital. They can make payment after receiving the payment from the customers.
A wholesaler provides following services to the manufacturer:
(a) Economies of Scale: Wholesalers help the manufacturers to avail the benefits of large-scale operations as they buy goods in large quantity. They buy in bulk which enables the manu-facturer also to produce in bulk & avail benefits of largescale production.
(b) Sales Promotion: Wholesalers employ a sales force to reach retailers located in far corners of the country The sales person of wholesaler perform the task of persuading the retailers to display and sell the goods at their retail outlets.
Services of Wholesalers to Retailers:
(a) Regular Supply: Wholesalers maintain a large stock of goods. Therefore whenever a retailer requires goods, these can be immediately supplied from the warehouse of wholesalers. Thus wholesaler acts as a warehouse keeper of the retailer.
(b) Financing: Wholesalers sell good to retailers on credit. Therefore retailers need not maintain large working capital. They can make payment after receiving the payment from the customers.
