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Question

What are the services provided by the wholesaler to the manufacturer ?

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Solution

Following services are provided by the wholesaler to manufactures :

(i) Facilitating large-scale production: Wholesalers pass on the pool of retailers order to manufacturers and facilitate them to undertake production on large scale and reap the economies of large scale.

(ii) Bearing risk : Wholesalers take the full responsibility for storing the products and bear the risk of fall in prices. theft, pilferage, spoilage etc. which reduces the burden of the manufacturer.

(iii) Financial assistance : Wholesalers make cash payment for the goods purchased by them from manufacturers. To that extent manufacturer need not block their capital in the stock.

(iv) Expert advice : Wholesalers provide valuable information about market demand, competitors products, changes in fashion or style which is of great help to manufacturers.


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