Services to Manufacturers
The major services offered by wholesalers to the producers of goods and services are given as below:
(i) Facilitating large scale production: Wholesalers collect small orders from number of retailers and pass on the pool of such orders to manufacturers and make purchases in bulk quantities.
(ii) Bearing risk: The wholesale merchants deal in goods in their own name, take delivery of the goods and keep the goods purchased in large lots in their warehouses.
(iii) Financial assistance: The wholesalers provide financial assistance to the manufacturers in the sense that they generally make cash payment for the goods purchased by them.
(iv) Expert advice: As the wholesalers are in direct contact with the retailers, they are in a position to advice the manufacturers about various aspects including customer’s tastes and preferences, market conditions, competitive activities and the features preferred by the buyers.
(v) Help in the marketing function: The wholesalers take care of the distribution of goods to a number of retailers who, in turn, sell to large number of customers spread over a large geographical area.
(vi) Facilitate continuity: The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced.
(vii) Storage: Wholesalers take delivery of goods when these are produced in factory and keep them in their godowns/warehouses.