The Purpose Of The Wholesale
Why was the wholesale and has been proven to this day? The wholesale business was to achieve a balance in the location of suppliers, producers and retailers. The wholesale trade as intermediaries. One who settles trade goods at your own risk, to customer, which are not private, that perceives a wholesale function. In contrast to the direct purchase from the manufacturer, called intermediaries, by an indirect way of sourcing when switched on. The benefits for the retail industry are obvious. While higher input costs on him come, but the wholesale takes over the transport, storage and an education of range of for him.
If the production and the demand of goods do not match, the wholesale takes over the function of the camp. If E.g. the manufacturer provides its entire range of jewellery, but in winter, in the retail no anklets are in demand, will the jewelry wholesale warehouse and then sold it on demand, so can the need for Customers are continuously met. Another feature of the wholesale trade is the finish. Some products need some time to the tire or a treatment after the generation before you can sell it to the consumer. For example, wine or cheese. The wholesaler is a link between trade, retail and industry. He is always dependent, both its customers and suppliers.
A manufacturer produces for example, 10000 rings, he sold to various wholesalers. This then sold to many retailers, who in turn, the consumer further sell these as individual pieces, to their customers, the rings. Through the mediation of the wholesale trade, the General risk is shared, reducing distribution costs (costs, incurred in the distribution of products from the farm to the consumer) and facilitates the financing. SID Kroker