Question

Explain the services offered by the wholesalers to the manufacturers.

Answer 1

Wholesalers offer a wide variety of services to manufacturers. The following are examples of such services:

(a) They facilitate large-scale production: Wholesalers purchase goods in bulk from manufacturers and sell them to retailers in small quantities for further resale. This bulk purchase made by wholesalers enables manufacturers to undertake production on a large scale without worrying about storage facilities. Thus, wholesalers facilitate large-scale production.

(b) They provide storage facilities: When wholesalers purchase goods in bulk quantities from manufacturers, they store these goods in their godowns or warehouses, reducing manufacturers’ burden of finding proper storage.

(c) They collect market information: Wholesalers provide different kinds of information to manufacturers, such as information about the tastes and preferences of customers, prevailing market conditions, level of competition in the market, and type of goods demanded by consumers. This in turn helps manufacturers to produce goods according to the market needs.