Question

Explain the services of retailers to Wholesalers.

Answer 1

Services of Retailers to Wholesalers.

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 an order to 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.
7. Connecting Link: Retailer purchases goods from a wholesaler and sells them to the customer and thus act a middleman.
8. Increase Sales: Retailers help the wholesaler to increase his sales by buying goods from him regularly and at short intervals.