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Question
What is wholesale trade? Discuss the role of wholesalers in a market.
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Solution
Instructions:
- Explain the meaning of wholesale trade.
- Explain the role and functions of the wholesaler.
Solution:
- Wholesale trade refers to buying goods from manufacturers or their agents and selling them to the retailer in relatively smaller quantities.
- Those who are engaged in wholesale trade are called wholesalers.
- They buy the goods directly in bulk, which are further supplied to the retailers.
- They generally deal in one item and are not directly linked to the customer.
Functions of wholesaler:
- Buying and assembling goods: Every wholesaler buys the commodity of his trade at a cheap rate and makes it available to the retailer as and when required.
- Hold adequate stock: Every wholesaler store the goods on a large scale, thereby helping the producer as well as the retailer.
- Transportation: The wholesaler helps in the transportation of goods from the place of production to the place of retailer.
- Financing: The wholesalers provide credit facilities to the retailers and sometimes even give advance payment to the manufacturers.
- Selling and promoting: A wholesaler sometimes undertakes activities like advertising, personal selling and promotion to increase the demand of goods.
- Risk bearing: The wholesalers have to bear the risk of loss which may be caused by natural calamities, change in demand, price fluctuations, and holding of large stock.
- Marketing information: Wholesalers keep themselves informed of the changing trends of the market and act as a two-way channel between producers and retailers.
- Grading and packing: Wholesalers perform packing functions like sorting, grading, and labelling the products.
- Explain the meaning of wholesale trade.
- Explain the role and functions of the wholesaler.
- Wholesale trade refers to buying goods from manufacturers or their agents and selling them to the retailer in relatively smaller quantities.
- Those who are engaged in wholesale trade are called wholesalers.
- They buy the goods directly in bulk, which are further supplied to the retailers.
- They generally deal in one item and are not directly linked to the customer.
- Buying and assembling goods: Every wholesaler buys the commodity of his trade at a cheap rate and makes it available to the retailer as and when required.
- Hold adequate stock: Every wholesaler store the goods on a large scale, thereby helping the producer as well as the retailer.
- Transportation: The wholesaler helps in the transportation of goods from the place of production to the place of retailer.
- Financing: The wholesalers provide credit facilities to the retailers and sometimes even give advance payment to the manufacturers.
- Selling and promoting: A wholesaler sometimes undertakes activities like advertising, personal selling and promotion to increase the demand of goods.
- Risk bearing: The wholesalers have to bear the risk of loss which may be caused by natural calamities, change in demand, price fluctuations, and holding of large stock.
- Marketing information: Wholesalers keep themselves informed of the changing trends of the market and act as a two-way channel between producers and retailers.
- Grading and packing: Wholesalers perform packing functions like sorting, grading, and labelling the products.
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