Under the present circumstances, the elimination of a wholesaler is not possible. No matter how much we may try to eliminate them, but their position is necessary in the field of business activities. Of late, many manufacturers have opened their own retail shops at leading commercial spots.
Under what circumstances can a wholesaler be eliminated from the chain of distribution?
When wholesaler may be eliminated. When prices of goods are high like those of motor vehicles, the wholesaler may be eliminated since the manufacture can bear both selling and distribution costs.
Why is the wholesaler important in the chain of distribution?
Wholesaler is an important chain of the channel of distribution because it is an agent between a manufacturer and retailers. A wholesaler purchases the goods from manufacturer in bulk quantity and re-sells it to retailers in small quantity. Wholesalers occupy a pivotal place in the marketing channel set-up.
Why are wholesalers used in distribution?
Wholesalers are experts in the process of taking finished goods and getting them on store shelves. The first key step for a wholesaler is to decide which products to purchase and distribute. Generally, a distributor looks for products that have strong consumer appeal that retailers will want to acquire.
Are there circumstances where middlemen can be eliminated?
With the exception of direct dealings or one-to-one transactions, no exchange can materialise without middlemen. Middlemen can be “eliminated”, but not their functions. Even in the shortest supply chain, say online buying, middlemen are needed at some points along the chain.
Why are wholesalers eliminated?
Reasons for the elimination of the wholesaler. Own their own warehouses. It is cheaper to buy from the producers/ manufacturers directly. All manufacturer’s goods are branded and are easy to sell directly to the retailers. Goods that have a slow rate of turnover such as jewellery, airplanes, expensive cars e.t.c.
Are the circumstances where middlemen can be eliminated?
Why should middlemen be eliminated?
In theory, eliminating the middlemen sounds like a good idea. This would help to lower costs for consumers who could buy products for less and for businesses who could sell their products for less. When you buy groceries, you can get various products all in one place.
