Benefits of wholesaler.

1.Reduce overhead cost.

                                                                                                        

Wholesaler purchase in bulk quantity and sell at their own effort. Hence manufacturer’s overhead  cost are saved.  Once a product is supplied to a wholesaler , it will be distributed in different location. Manufacturer need not to take any headache.  So  it is cost effective for manufacturer.

2.Supply to interior place. 

Manufacturer cannot reach to all the spread out and interior location, here wholesaler plays a vital role . Retailers from these interior location comes to whole sell market for their purchase. Wholesalers  are also gets business from these retailer.

3.Gives huge volume.                                                                                                            

Whole  seller purchase in huge quantity and sell in a small quantity to retailer. Since wholesaler sells to large numbers of retailer, he can give a big volume. Also  it is beneficial to the manufacturer that he gets big business volume from wholesale  market.

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4. Promotes product.  

Wholesaler can promote any product very effectively. Retailer from different location comes to wholesaler and wholesaler can push any new product to retailer . As both retailer and wholesaler are  well know to each other , it is very easy to close a deal.

5.Understand market trend and market behavior.                                                          

Wholesaler remains well informed about market trend , retailer behavior , seasonality etc. Accordingly he plans his purchase and keeps information sharing between retailer and distributor.

6.Facilitates small retailer.

Providing smaller retailers access to products they cannot acquire without wholesaler help offers a benefit for suppliers as well since it opens additional market opportunities for suppliers. Namely, suppliers can have their products purchased and made available for sale across a wide number of retail outlets. More importantly, for a company offering a new product, convincing a few wholesalers to stock the product may make it easier to gain traction in the market as the wholesaler can yield power with the smaller retailers convincing them to stock the new product. Considering a wholesaler can serve hundreds of small retail customers, the marketing efforts required to persuade the wholesaler to adopt a new product may be far more efficient compared to efforts needed to convince individual store owners to stock the new product.

7. Facilitates small manufacturer.                  

                                                                                        

For small manufacturer , it very difficult to expand their own distribution system. Their business size is  very low and in this situation they cannot afford sales support. Hence they can take advantage of wholesaler. Wholesaler can give them big volume within short time and also gives them cash flow .

8.Ready access to goods .        

Wholesaler provides ready access to goods for retailer. Wholesaler always keeps stock at their own godown for reselling purpose. Anytime retailer can purchase goods from wholesale market. In one side it is convenient for retailer, in other side wholesaler gets business volume.

                            

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