Wholesalers

Wholesaling includes all factions in which the purchase is activated by a profit or business motive in making the purchase. A wholesaler is middleman engaged in whole-soling function.

Function of Wholesalers
1.    Anticipates customer requirements
2.    Assembles goods form several sources.
3.    Prompt delivery
4.    Granting of Credit
5.    Maintains the goods
6.    Advise the manufacturer about the product
7.    Reduces manicure capital requirement

Types of Wholesalers
       Some of the type of wholesalers are

(a) Merchant  Wholesaler :

These wholesalers operate between manufactures, the retailers and the industrial user. Thy are independent and responsible for major part of wholesale business. Merchant wholesalers can be classified into full service merchant wholesalers and limited function merchant wholesalers.

(b) Agent wholesalers:

Agent wholesalers sell the goods on behalf of the manufacture and gets commission for it. There are five kinds of agent wholesalers namely:

(i)    Brokers:A broker negotiates sales between the manufacturer and the buyer. Broker brings
       them together in an exchange relationship.
(ii)    Commission Agents: These agents store the goods and then sell them in return for
        commission.
(iii)    Purchase Agents: Purchase agents buy the products in bulk in order to get quantity discounts.
(iv)    Selling Agents: He is the sole distributor of the entire product from the manufacturer. He
         advices the manufacture on pricing and customer preferences. He works on Commission
         basis.
(v)    Manufacturer agent: This is authorized by the manufacturer to sell the product in limited and
       well-defined territories. He is similar to the selling agents.

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