Question

Explain the different services of retailers.

Answer 1

Retailers provide services to:
(A) Customers and (B) Wholesaler

(A) Services of Retailers to Customers:

1. Variety of Goods: Retailers keep different brands of goods which helps the customer to choose.
2. After Sales Services: After-sales services are given for a particular period, which is known as the guarantee period for costly and durable goods such as refrigerators, TV., etc. Such services create confidence in minds of consumers for further purchases.
3. Regular Supply of Goods: Retailer stocks the goods sufficiently which are required by the customers and customers purchases the goods whenever needed.
4. Credit Facilities: Retailers provides credit facility to the customer which helps him to grow up sales and also it is convenient for the customers to purchase goods.
5. Home Delivery: Retailer provides home delivery service to the customers which helps him to maintain a permanent relationship with the customers.
6. Information: Retailer is a link between manufacturer and consumer. He provides valuable information from the customers to the manufacturer so that he can modify the product as per the likes and dislikes of the customers. Complaints regarding defects in goods, improper functioning of the product, constant breakdown, etc. are passed on to the manufacturers.
7. Local Convenience: Retailers are generally located near residential areas. Hence, customers can buy the goods whenever they require.
8. Improves Standard of Living: Retailers help customers to increase their standard of living by making available all the latest types of goods produced.
9. Sale of Perishable Goods: Perishable goods like milk, meat, fish, vegetables, etc. require quick distribution. Hence, the retailer provides this facility as per the customer's requirements.
   

(B) Services of Retailers to Wholesaler:

1. Create demand: Retailers attract consumers' attention towards new products and arrivals in the market through personal salesmanship.
2. Helps to Distribute: Retailer helps distribute perishable goods which are having a short life. He also performs assembling, grading, and packing function.
3. Marketing: Retailers sometimes carry marketing functions for the wholesalers i.e. handling transportation, solving shortage problems, advertising goods, etc.
4. Financing: Wholesaler collects the order from customers and takes advances from them. Then places the order with the manufacturer. The retailer collects sales proceeds from customers and passes them to the Wholesaler and finally, it reaches the Manufacturer.
5. Attracts Consumers: Retailer makes advertising of goods by displaying in the showroom and thus promote sales. This activity directly helps the wholesaler to sell the product.
6. Provides Information: Retailer provides information to the wholesaler regarding market and demand of goods by the customers, likes and dislikes of customers, etc.