Services to Retailers

Wholesalers also render valuable services to retailers:

• Availability of goods: Retailers must stock varied commodities to offer their customers choice. Wholesalers make the products of many manufacturers readily available to retailers, saving them the trouble of collecting goods from several producers and holding a big inventory.
• Marketing support: Wholesalers carry out marketing functions such as advertising and sales-promotion activities to attract customers. This benefits retailers by helping raise demand for various new products.
• Grant of credit: Wholesalers generally extend credit to their regular retail customers, enabling retailers to run their business with a relatively small amount of working capital.
• Specialised knowledge: Wholesalers specialise in a particular line of products and know the pulse of the market. They pass this expertise on to retailers — informing them about new products, their uses, quality and prices, and even advising on the decor of the outlet, allocation of shelf space and product demonstration. …