Q5. Explain the Features of Wholesaler and Retailer
Answers
The followings are the characteristics of wholesalers:
i. Wholesalers buy goods directly from producers or manufacturers.
ii. They buy goods in large quantities and sell in relatively smaller quantities.
iii. They sell different varieties of a particular line or product. For example, a wholesaler who deals with paper is expected to keep all varieties of paper, cardboard, and card.
iv. Wholesalers may employ a number of agents or workers for distribution of products.
v. They invest in the products of companies and need large amounts of capital.
vi. They provide credit facilities to retailers.
vii. They provide financial assistance to the producers or manufacturers by buying in bulk.
Some of the functions of retailers are:-
1. Merchandising 2. Warehousing 3. Selling 4. Risk-Bearing 5. Grading and Packaging 6. Grant of Credit
7. Guide to Wholesaler or Producer 8. Last Outlet in the Chain of Distribution 9. Advertising, Salesmanship and Sales Promotion 10. Ready Stock 11. Variety of Products 12. Transportation