Discuss the importance of wholesalers in marketing manufactured good.
Wholesaler is the one who is engaged in wholesale trading. He acts as a middlemen between producers or importers on one hand and retailers or industrial users on the other. From the point of view of society, wholesalers help in distributing the goods efficiently and properly because of their specialized skills and knowledge.
As the work of distribution lies in the hands of wholesalers, manufacturers can easily and properly concentrate on production of goods in order to fetch profit. If manufacturers perform the activity of distributing the goods, they would not be able to concentrate on producing the goods efficiently due to the division of attention.
Some companies that manufacture products may not have sufficient capital in order to employ salesmen to contact a large number of retailers. For many small retailers such contacts may result to be expensive as they work in remote areas. Such retailers prefer to go for small quantities because of inadequate market information, sources of supply and limited capital.
The work or duty of the wholesalers is to solve the queries or problems of both manufacturers and small retailers. The wholesaler can meet the small orders of retailers by placing a large order with the producer in order to fulfill the needs of many small retailers in his area. They can hold and handle the inventories involving heavy investment in effective and proper way. They are closer to the market and can concentrate on the localized marketing policies without the distractions of manufacturing problems.