27. Wholesalers are the important link in a chain of distribution. They provide various services to manufacturers & retailers. Explain any four
such services provided by them to the manufacturers. (4)
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Answers
The sevices of wholesalers to manufacturers are:
1. Facilitating Large-scale Production: Since wholesalers puchase goods from manufactuers in bulk, they help the producers in undertaking productions on a large-scale.
2. Financial assistance: Wholesalers purchase goods from the manufacturers in cash and sometimes also gives advance money to manufacturers for bulk orders.
3.Expert Advice: As wholesalers are in direct contact with the retailers, they have knowledge about market trends and change in customer's taste and preferences, which they can give to manufacturers.
4. Bearing Risk: Wholesalers purchase goods from manufacturers in cash and sell to retailers on cedit and also store them in warehouses. They face the risk of bad debṭś, theft, fire, change in consume's tastes and preferences etc.
5. Marketing function: They take goods from manufactuers and sell them to retailers. This makes the manufactuers focus more on manufactuing and less on marketing, which improves efficiency.
6. Maintaining Continuity: The wholesalers take goods from manufactuers as and when they are produced, which helps the manufacturers in maintaining continuity of production activity.
7. Storage: By storing good in their own warehouses, they relive the manufactuers from storage problems.