Wholesalers are middlemen between the manufacturers and the retailers. They increase the cost of marketing and price of the products goes up. The consumers have to pay higher price. By eliminating wholesalers, prices of the products will decrease and the consumer shall benefit.
Why a wholesaler should not be eliminated in the chain of distribution?
They should not be eliminated because they have gained special knowledge and experience in sales and distribution of goods. If wholesalers are eliminated, consumers will feel difficulties to bet necessary goods to satisfy their needs.
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 wholesalers Cannot be eliminated?
Since the wholesaler enjoys a monopolistic position, he takes undue advantage of the situation and charges exorbitant prices from his customers. Thus, if such a wholesaler is eliminated, the retailers and consumers would be favourably affected.
Are the 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.
Are there circumstances where middlemen can be eliminated?
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. For instance, a broker is needed to match orders and supplies, warehouses for storage and transporters for shipment.
Can Wholesalers be eliminated justify your answers with reasons?
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.
Why do we need to remove wholesalers from the distribution chain?
The appointment of authorised dealers or official distributors who sell directly to retailers and consumers. Perishable goods necessitate the need to shorten the distribution chain. Some goods are fragile and thus require special handling which only the producer can provide and are thus sold directly to the consumer by manufacturers themselves.
Why are wholesalers eliminated from the business scene?
If they are eliminated, goods can be directly supplied from the manufactures to the consumer. Wholesalers maintain their existence at the cost of consumers and they are nothing but parasites thriving at the expense of the consumers who pay more of the purchases, just to feed these middlemen. Hence they should be eliminated from the business scene.
When is it safe to eliminate the wholesaler?
When production is affected by strikes, labour troubles, power-cuts, etc., it is the consumer who suffers. Thus these middlemen can safely be eliminated from the business activities. (i) The services and functions of a wholesaler are numerous and indispensable for the smooth flow of goods from the manufacturer to the ultimate consumer.
How does eliminating wholesalers affect the price of a product?
