A strong small business purchasing strategy reaps the advantages of wholesale pricing when appropriate while filling gaps in demand by dealing directly with small independent producers. This provides a form of financing for retailers, who may have to borrow funds if they are required to make payment when receiving the products. They purchase goods in a bulk and split them into smaller lots and then repack them for the sale to the retailers. Sorting the goods according to their grades is more important in case of export consignment. As the wholesaler acts as an interface between the producer and the retailers, he ensures the smooth and uninterrupted flow of goods to the consumers through the retailers by maintaining adequate inventory to avoid stock-out conditions and consumers’ inconvenience and annoyance. Assembling of Goods 2. The promotional help comes in various forms, including posters or brochures to be displayed in retail stores. This is important to retailers because they have a limited amount of space. Wholesalers occupy a pivotal place in the marketing channel set-up. Once a wholesaler persuades retailers to purchase a product, it will periodically contact the retailers to determine whether they need to purchase more of that product. The wholesaler sorts out the goods according to their quality. 9. They purchase goods from the manufacturers in cash or deposit security to assure the purchase of goods. The wholesaler purchases different varieties of goods from different manufacturers, usually much in advance of the demand. Having purchased the goods from the manufacturers in large quantities, he assumes the risks arising out of changes in demand and spoilage or destruction of goods in his warehouse. The retailer’s decision to purchase particular products may be primarily due to the wholesaler’s persuasion. Wholesaler buys goods in bulk from the producers and transports them in his own go-down. It also helps manufacturer, produce the goods according to the change in the tastes and fashions of the consumer. The wholesaler thus helps in the distribution of goods. The term “wholesale” refers to the link in the supply chain that provides retail businesses with products created by other businesses. 8. 7. What Do Wholesalers Do in the Channel of Distribution?. 12. The producers need not do the transportation arrangements to make their goods available to the final consumers, as that is taken care by the wholesaler. Buys in Bulk and hence helps them concentrate upon large scale and quality production. Distribution – It sells the products to various retailers located at different places. Transportation – Wholesalers have to move the goods from the place of production to their warehouses and from there to the place of retailers. Assembling – The wholesaler buys goods from different manufacturer producing the same streak of goods. Wholesaler is responsible for a wider geographical area. A wholesaler sorts out the goods according to their quality, size, shape, content etc. TOS4. path or route decided by the company to deliver its good or service to the customers Risk Bearing – Wholesaler bears various risks associated with the business. Privacy Policy3. A nation-wide distributor is a wholesaler, but a small bakery that distributes its handmade confections to coffee shops and groceries is a wholesaler as well, because it sells its products to retail stores rather than directly to end users. Instead, they can deliver in bulk to wholesalers. However, for the producers (sugar factories), it is not convenient and economical to offer the sugar in such small size packs. One advantage that wholesalers have is that their sales volumes insulate them somewhat from economic downturns. They also send goods to retailers in far-flung areas. Smaller lots are prepared and properly packed for the retailers. They also supply goods, to the retailers on credit. Functions of a Wholesalers – Top 7 Functions: Storage, Sales Promotional Work, Transportation, Storage, Financial Help, Risk Taking, Packing and Grading, Functions of a Wholesalers – 8 Important Functions: Regular Supply, Storage, Marketing Functions, Financial Assistance, Risk Bearing and a Few Others, Functions of a Wholesalers – Top 8 Functions: Assembling, Bulk Breaking, Product Assortments, Warehousing, Storage, Grading, Packing and a Few Others, Functions of a Wholesalers – Services to Manufacturers, Services to Retailers and Services to Society. The functions of a wholesaler are as follows: The wholesaler needs to ensure regular supply of goods. All these activities benefit both, the manufacturers as well as retailers by creating effective demand for the products. A wholesaler usually buys goods on cash from the producers and sells on credit to the retailer. The wholesaler, being the important channel member performs all necessary functions, which are supposed to be performed by the channel participants. The most important functions of a wholesaler in the marketing of goods are as under: 1. A wholesaler purchases goods from the manufacturer and stocks the goods with himself for further sale. Share Your PPT File, Functions of Wholesalers: Assembling of Goods, Breaking in the ‘Bulk’, Warehousing or Storing and a Few Others, Functions of Wholesalers – Top 10 Functions: Assembling of Goods, Breaking in the ‘Bulk’, Warehousing or Storing, Transporting, Grading, Financing and a Few Others, Functions of Wholesalers – 8 Main Functions: Collection, Storage of Products, Distribution, Financing, Risk Taking, Selling, Promoting and a Few Others, Functions of Wholesalers – 8 Main Functions: Assembling, Buying, Warehousing, Transporting, Financing, Risk Bearing, Providing Market Information and a Few Others, Functions of Wholesalers – Assembling, Dispersion, Warehousing, Transportation, Financing, Grading, Packaging, Pricing and Risk-Assuming. 7. 2. Communication of Market Information: Wholesalers foresee market conditions. The wholesaler buys goods from different manufacturer producing the same streak of goods. Wholesalers also provide packing facility to the retailers. Helps manufacturers in demand forecasting. The channel of distribution refers to the overall flow of information and goods from original manufacturer to end consumer. However, unlike a wholesaler that specializes in the types of products that you sell retail, it may be difficult to sort through thousands of options to find the right ones for your company. Wholesalers sometimes finance the manufacturers and retailers. As an example, retailers selling shoes may see a fall in sales and profits in a recession, but they will still have to obtain supplies from wholesalers. vi. Here the stockists/wholesalers bridge this gap between the producers’ offering and individual customer’s requirement. They arrange and maintain their own vans for the movement of goods. 2. He assembles them in his warehouse for the purpose of sale to the retailers. Distribution of Goods – The wholesaler keeps the goods in warehouse. 5. Financing – This is an important function of wholesaler. Products assembled and kept in stock in the warehouses are distributed to the retailers, thereby dispersing the goods to various locations. The wholesaler also provides the facility of transportation to the retailer shop, which is one of the important functions of wholesale trade. 5. (d) Storage – A wholesaler is the warehouse keeper of the market. 3. This information helps the retailers to estimate the demand of consumer. A strong small business purchasing strategy reaps the advantages of wholesale pricing when appropriate while filling gaps in demand by dealing directly with small independent producers. They protect the producers against this risk and also have to bear other losses including the loss through debts etc. Wholesalers help to stabilize prices by adjusting supply according to demand. Wholesalers occupy a pivotal place in … There is a time gap between the production and the consumption of goods. 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