The Wholesaler

Wholesale business is the business of buying goods in large quantities, from producers or manufacturers, and selling in small quantities to retailers, that is, shopkeepers and traders.

The business involves individuals and organisations.

Functions of the Wholesaler to the Producer:

1. The wholesaler buys goods in large quantities from the producers.

2. The wholesalers assist producers in selling their products, this will enable them to concentrate on production.

3. The wholesalers usually pay cash or pay promptly for all purchases.

4. Wholesalers sometimes assist the producers in preparing the goods for sale.

5. The wholesalers usually advertise their products on behalf of the producers, thereby creating awareness and improved sales.

6. The wholesaler moves goods from where they are produced, to his or her warehouse, which creates space for the producer to stock new items.

Functions of the Wholesaler to the Retailer:

1. The wholesaler sells in small quantities to the retailer.

2. The wholesaler sometimes grants credit facilities to the retailer.

3. The wholesalers also serve as a referee to the retailer whenever required.

4. He or she gives expert advice to the retailer concerning the products.

5. The wholesaler normally passes relevant information, from producers, concerning the goods sold to the retailers.

6. The wholesaler usually transports goods from the warehouse to the retailer’s place of business.

Definition of Breaking Bulk: This is the practice of bulk buying products, commodities, etc., and selling smaller quantities to users or consumers. This operation is often performed by a wholesaler although it may be done by a retailer.