Explain the services offered by wholesalers to manufactures
Answers
Answer:
Wholesalers purchase goods in bulk quantities, provide market information and financial assistance. ... Enable the producers to manufacture goods on a large scale by purchasing from them in bulk quantities.
Answer: The major services which are offered by wholesalers to manufacturers are-
1. It helps in marketing function- The wholesalers take utmost care of the distribution of goods and services to a number of retailers who again, in turn, sell to a bulk of customers spread over a worldwide area.
2. It facilitates continuity- The wholesalers facilitate continuity of the production and distribution activity throughout the whole year by purchasing the goods and services as and when these get produced.
3. The storage wholesalers take delivery of goods when the factory production is done and keep them in their godowns or warehouses as a stock.
4. It facilitates a large scale of production- Wholesalers collect less number of orders from a number of retailers and give the pool of those orders to manufacturers or producers and make purchases from that in bulk quantities.
5. Bearing High Risk- The wholesalers deal goods in their own legal name and then take the delivery of the goods and keep them in their godown as a stock which further can bear high risks such as fall in market prices, spoilage of goods, fire burst out, etc.