What are the Functions of a Wholesaler?



We may look at the functions of a wholesaler into the following ways: 

Provide link between the manufacturer and the retailer.

Breaks the bulky for the goods purchased from the manufacturer and resells at convenient quantities for retailers to buy.

Warehousing. A producer produces in large quantity and need to sale them quickly. The wholesalers buy their output in bulk and store it in his warehouse until it is required by retailers.

Preparing goods for sale. Sometimes the wholesaler packs, grades or brands the goods he buys before passing them to the retailer.

Transport .Wholesaler transports the goods from the factory of the manufacturer to his warehouse and from his warehouse to the retailer shop. 

Source of information. Being the link between manufacturers and retailers the wholesaler is in position to know from retailers what type of goods are demanded. He also feeds retailers with information concerning type of supplies and newly produced goods.

Price stability: Certain commodities like agricultural products are produced seasonally but demand is steady throughout the year. Wholesalers store them and sale later.

Financing: A wholesaler by buying in large quantities and paying in cash he finances the manufacturer. At the same time a wholesaler extend credit facilities to retailers who have very little capital at their disposal. 

Preparing goods for sale: Sometimes the wholesaler packs, grades or brands the goods he buys before passing them to the retailer.

Transport: Wholesaler transports the goods from the factory of the manufacturer to his warehouse and from his warehouse to the retailer shop

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