What are the Services offered by Wholesalers To Manufacturers?

Wholesaler's services To Manufacturers

Risk reducing
Risk reduced for the manufacturer include the following:
Goods may not sell because of fall in demand.
Goods fetching lower prices because of excess supply.
Goods fetching lower price because of fall in demand.
Holding goods for longer period, which means incurring storage costs.
Extending credits to a large number of retailers may result in heavy bad debts.

Specialization
•        A wholesaler is a specialized trader and allows the producer to specialize in production hence improves the overall efficiency.


Financing
•        By buying in bulk and ensuring prompt and large payments the manufacturer is supplied with regular working capital.

Market research
•        The wholesaler assists the manufacturer by supplying them with market information. Such information could be related to consumer demand, the producer’s competition and buying trends.

Economies of scale benefit
•        By buying in large quantities the wholesaler enables the manufacturer to benefit from the economies of large-scale operation.

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