Explain the services of a wholesaler to a producer and retailer.

Explanation

The following services are offered by a wholesaler to manufacturer:

(a) Facilitate large-scale production :
Wholesalers purchase goods in bulk from manufacturers and sell them to retailers in small quantities for further resale. This bulk purchase made by wholesalers enables manufacturers to undertake production on a large scale without worrying about storage facilities. Thus, wholesalers facilitate large-scale production.


(b)Provide storage facilities :
When wholesalers purchase goods in bulk quantities from manufacturers, they store these goods in their godowns or warehouses, reducing manufacturers’ burden of finding proper storage


(c) Collect market information :
Wholesalers provide different kinds of information to manufacturers, such as information about the tastes and preferences of customers, prevailing market conditions, level of competition in the market and type of goods demanded by consumers. This in turn helps manufacturers to produce goods according to the market needs.
Services provided by the wholesalers to the retailers:-


:-They act as the retailers 'buying agent' and saves them from the trouble of searching out and assembling goods from several manufacturers.

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