Functions of a wholesaler

Business studies study module

These can be discussed as services rendered to producers, retailers and to consumers.

Services of wholesalers to the producers

  • They relieve the producers the problem of distribution buying goods from them and selling to retailers
  • They relieve the producers of some risks they would experience e.g. damage,theft,fall in demand e.t.c
  • Save the producers from the problem of storage buying goods and keeping in their warehouses
  • They prepare goods for sale on behalf of the producers
  • They get feedback from consumers on behalf of producers
  • They promote products through advertising, displays,trade fairs and exhibitions
  • They finance producers buying goods from them and paying in cash.

Services of wholesalers to the Retailers

  • They stock a wide variety of goods in large quantities relieving the retailer from buying from different producers
  • They avail goods at places convenient to retailers
  • They break bulk for the benefit of retailers
  • They offer transport facilities to retailers
  • They offer advisory services to retailers regarding market trends
  • They offer credit facilities to retailers
  • They engage in product promotion on behalf of retailers
  • They sort, blend, pack and brand goods saving retailers from having to do it.

Services of wholesalers to consumers

  • They ensure a steady supply of goods to retailers hence consumers are not faced with shortages
  • They ensure a stable supply of goods hence there will be stability in market prices
  • They enable consumers to enjoy a wide variety of goods
  • They break the bulk of goods thus enabling the consumer through the retailer to get the goods in convenient quantities
  • They prepare goods for sale e.g. branding, blending and packaging
  • Pass information to consumers through retailers about the goods e.g. new products, new prices and their use.



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