UNIT -11
WHOLESALERS AND RETAILERS
11.2 WHO IS A WHOLESALERS ?
→ A wholesaler is the person who buys large quantitites of goods and selling them in smallere amounts.
→ Wholesalers buy goods from manufacturer and sell to retailers or individuals
11.4 TYPES OF WHOLESALERS :-
→ Wholesalers may be classified into three different buses :-
(1) Based on Merchandise :-
→ General merchandise wholesalers
→ General-line wholesalers
→ Single-line or speciality wholesalers
(2) Based on method of operation :-
→ Service wholesalers
→ Limited function wholesalers.
(3) Based on Geographical Coverage :-
→ Local wholesalers
→ District wholesalers
→ Regionla/ National wholesalers
10.5 FUNCTION OF WHOLESALERS :-
(1) Assembling products
(2) Arranging storage
(3) Transporting goods
(4) Distribution goods
(5) Grading and packaging
(6) Financial
(7) Risk-bearing
(8) Price fixation
11.6 SERVICES OF WHOLESALERS :-
• Service to Manufactures :-
(1) The wholesaler place large orders with the manufacturers or procure large quantitites of goods from manufacturers.
(2) Wholesalers remain in close touch with the retailers.
(3) The wholesalers place orders in advance on the basis of their expectations regarding future demand of products even though the current demand is low.
• Service to Retailers :-
(1) A variety of goods can be procured by retailerss in small quantitites from the wholesalers.
(2) Small retailers can get repeated supplies of products from wholesalers.
(3) Retailers also get advantage of the wholesalers specaialised knowledge of the products.
(4) Retailers ar protects from the risk of loss which would arise if they were to hold large stocks of any products.
(5) Most wholesalers supply goods on credit to the retailers.
(6) Generally retailers come to know about new products who deal with manufacturer
11.7 MEANING AND IMPORTANCE OF RETAILING :-
→ Retailing refers to all transactions which involve sale of goods to the ulitmate consumers for personal consumption.
11.8 FUNCTION OF RETAILERS :-
(1) Estimating the demand.
(2) Procurement of goods.
(3) Transporatation.
(4) Storing goods.
(5) Grading and Packaging.
(6) Risk-bearing.
(7) Selling.
11.9 SERUICES OF RETAILERS :-
(1) Holding ready stocks.
(2) Display of goods.
(3) Advice to consumers.
(4) Personal services.
11.11 FIXED SHOP RETAILERS :-
→ Fixed shop retailers locate their stores at fixed places where customers can easily reach and make their purchases.
→ Fixed shop retailers may be divided into :-
(1) Small Scale Retailers :-
→ Stalls on streets.
→ General merchandise shops.
→ Speciality shops.
→ Second-hand goods sellers.
(2) Large-scale Retail Shops :-
→ Departmetn stores.
→ Super-market.
→ Multiple shops or chain stores.
→ Consumers cooperative stores.
→ Discount houses.
→ Super bazaars.
→ Automatic vending machines
