Question

If the wholesaler is eliminated what difficulties do you think the manufacturers will have to face? Explain any three.

Answer 1

Following difficulties will be faced by a manufacturer

(i) A wholesaler facilitate the marketing of goods. In the absence of wholesalers, manufacturers will have to take the role of marketing the goods.

(ii) A wholesalers provides financial assistance to manufacturer by purchasing goods on cash or

giving advance to manufacturers. In the absence of wholesalers* manufacturers will have to block the capital in stocks. .

(iii) A wholesalers provides market information to manufacturers. In the absence of wholesalers, manufacturers will not have reliable information about the product and the market.