Marketing Management 3(2+1)

Lesson 17 : Wholesalers

Wholesalers

Wholesaling is an activity which involves selling of goods or services to the customers who in turn would use it for business use. Manufacturers directly sell the products to the wholesalers who in turn would either sell to a retailer directly or through an agent.

The role of wholesalers takes place due to four reasons

• The first reason is that small manufacturers who have limited finance cannot develop their own direct selling operations or retail outlets so they seek the help of wholesalers.
• Secondly, though ample funds are available with the manufacturers, their interest would be to invest in manufacturing activity rather than in retail business activity.
• Thirdly, wholesale business people are efficient at wholesaling, with customer relationship network and specialized skills which a manufacturer lacks.
• Lastly, retailers prefer to buy from wholesalers for their different assortment lines rather than from manufacturers.