Question

if the wholesaler is eliminated what difficulties do you think the manufacture will face ?

Answer 1

It is not possible for the manufacturer to reach every retailer, therefore for ease of distribution a wholesaler is chosen. In order to control selling and distribution expenses, it helps the manufacturer to have wholesalers. The manufacturer's working capital gets depleted as it continues to carry out production, hence it helps to have wholesalers from whom it gets support in replenishing the working capital at a quicker rate than would have been the case if the former were to depend on numerous retailers; the end result is better control of sundry debtors.