What you need to know about a Wholesaler

A Wholesaler is a Middleman who purchases in bulk from the producer and sells in small quantities to the retailer. It can also be described as an intermediary between the producer and the retailer. The Wholesaler is important in the channel of distribution
Functions of the Wholesaler
1. Branding: This is an important role of the wholesaler in relation to distribution. In order to give the consumer a wider variety of choice, the goods have to be branded
2. Breaking of Bulk: The Wholesaler buys from the manufacturer or producer in bulk or large quantity the goods produced or manufactured and sells to the retailer in smaller quantities.
3. Grading: The wholesaler does the grading of goods. This makes it possible for the goods to be sold fast as the grading puts the consumer in the right position to make a choice
4. Provision of Warehousing Facilities: The Wholesaler provides warehouse where he stores the goods that he purchases as this enables the producer or manufacturer to have space for further production activities.
5. Financing Production/Distribution: The provides finance for production and most especially distribution by allowing credits to the retailer and making sure they pays the producer promptly, they also pay manufacturer promptly and this helps avoid break in production.
6. Branding and Packaging: The Wholesaler in certain cases brands as well as prepares the goods for sale for packaging it. Packaging plays a very important role I presenting the goods in attractive and suitable form for purchase.
7. Risk Bearing: The Wholesaler buys and keeps the goods in stock. By doing this, the Wholesaler faces and bears the risk of fall in price, the risk of deterioration and the risk of obsolescence, which may result from change in fashion.
8. Informing the Manufacturer: The Wholesaler takes information from the retailer and makes it available to the producer
9. Price Stability: By stocking goods and ensuring that the goods are released to the market when they are needed, the wholesaler provides room for price stability.
10. Advertising and Marketing: The Wholesaler helps in creating awareness for the products and helps in finding market for the products.
11. Transportation: The Wholesaler in certain cases provides transportation facilities. He uses his vehicles to move goods from the producer or manufacturer

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4 thoughts on “What you need to know about a Wholesaler”

  1. I tried doing that before…I think two years ago. The money was good but it didn’t fly. No harm done.

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