wastage and disposal of goods in wholesale market? please answer
Answers
Essay # 3. Functions and Services of Wholesaler:
We may classify his functions and services into three sections.
A General Services (Marketing Functions):
i. Connecting Link:
In the channel of distribution in home trade, wholesaler acts as a connecting link between the supplier of goods (producer or importer) and retailers. When goods are manufactured, produced or imported, the supplies are distributed to the retailers through the agency of wholesaler under normal circumstances.
ii. Market Ware Housekeeper:
Wholesaler acts as the warehouse-keeper of the market and all surplus stock is stored by him for a lean time thus creating time utility. By regulating the market supplies with changing market demand (buying when demand is low and selling when it is high) he can bring about stabilisation of prices.
Seasonal supplies from place to place and from time to time are levelled out in the interest of all the parties concerned including the community of consumers.
iii. Risk-Bearing:
Risk-bearing function of the wholesaler is the most important service rendered by him. As he makes bulk purchase and maintains large stocks of commodities, he relieves, the manufacturer and also retailer from the bearing of risk of loss on account of changes in supply and demand and consequent changes in price.
iv. Relief to Both Parties:
As an intermediary, he gives concrete relief to the manufacturer and the retailer. The manufacturer is relieved from the botheration of collection of innumerable small and scattered orders of retailers and distribution of the supplies to them. Retailer is relieved from the worry of maintenance of large stock of varied articles as he draws upon the wholesaler as and when he desires to replenish the stock in his shop.
i. Connecting Link:
In the channel of distribution in home trade, wholesaler acts as a connecting link between the supplier of goods (producer or importer) and retailers. When goods are manufactured, produced or imported, the supplies are distributed to the retailers through the agency of wholesaler under normal circumstances.
ii. Market Ware Housekeeper:
Wholesaler acts as the warehouse-keeper of the market and all surplus stock is stored by him for a lean time thus creating time utility. By regulating the market supplies with changing market demand (buying when demand is low and selling when it is high) he can bring about stabilisation of prices.