The wholesaler performs useful economic functions. Discuss.
Explanation
Useful economic functions performed by the wholesaler are:
(i)The wholesaler purchases goods in bulk from the producer. They split their bulk purchase into smaller units so that the different retailers can collect the smaller quantities they want.
(ii)They provide warehouses where goods are stored until they are purchased by the retailers or even the customers.
(iii) They help in carrying out such marketing functions as advertising, packaging, branding and display of the product in strategic locations.
(iv) They provide information to the producer regarding the retailers' and customers' views about the products, change in taste, fashion and defects.
(v) They finance produc-tion by making prompt payment to the producer and finance distribution by granting credit to the retailers who often only pay after they have sold the goods.
(vi) The wholesalers often provide transport needed in distribution. They send their vehicles to collect the goods from the manufactures, and at times convey these goods to their retailers at different locations.
(vii) Branding of goods from the producer before selling to the retailers.