Functions of Wholesalers to Manufacturers & Retailers
Functions of Wholesalers to Manufacturers:
1. Breaking of Bulk: They buy in bulk and sell in small quantities to the retailer.
2. Financing: They finance products by ensuring prompt payment to the manufacturer and this will facilitate the production process.
3. Information Dissemination: They provide the necessary information to the manufacturer regarding the retailers’ and consumers’ views about the products.
4. Warehousing: The wholesaler provides warehousing facilities to get rid of stock-piling at the production point.
5. Advertising: The wholesaler helps in carrying out product advertising and sales promotions and by so doing creates awareness for the products.
6. Price Stability: They help to prevent price fluctuation by stocking the goods until they are demanded.
7. Provision of Transport: The wholesalers often provide transport needed in distribution. They send their vehicles to collect the goods from the manufacturers.
8. Credit Facilities: The wholesaler can give credit facilities to the manufacturer, sometimes by paying upfront for the products.
9. Risk Bearing: The wholesaler takes charge of the goods, thereby accepting responsibility for losses suffered in the course of distribution.
Functions of Wholesalers to the Retailers:
1. Finance: The wholesalers help the retailers with credit in order to finance the distribution of goods. Retailers are allowed to buy goods on credit.
2. Provision of Variety of Goods: The retailers have the opportunity to stock a variety of goods from various wholesalers.
3. Receiving Advice from the Wholesaler: The wholesalers help to provide technical information about the products and market to the retailers.
4. Goods are Provided in Small Quantity: The wholesalers provide goods in small quantities to the retailers from the bulk they purchased
5. Transport and Delivery Services: Arrangement is made by the wholesaler to help the retailer in the delivery and transportation of goods purchased to his shop
6. Advertising and Publicity Functions: The demand for products is been stimulated or increased through the functions of advertising and publicity carried out by the wholesalers
7. Link the Producers with the Retailer: The wholesalers help to link the retailer with the producers by the sales of goods
8. Repackaging and Grading: The wholesaler helps to process, grade or brand the products before delivering them to the retailers.