Benefits Offered By Wholesalers To Members Of Distribution Channel
Specific benefits offered by the wholesalers vary according to the types of wholesalers
. However, some of the benefits apply in all cases. Suppliers and retailers are the members of the distribution channel who benefit in particular from the wholesalers. There are two major benefits of wholesalers, one of which is for the retailers, while the second is for the suppliers.The first and foremost benefit of the wholesalers is that they provide access to products. Wholesalers basically operate to provide products and services to buyers, an example of which is the retailers. Retailers are not able to buy directly from the supplier, the reason being that the retailers? purchase quantities are not large enough to fulfill the suppliers? minimum order requirements, as a result of which the retailers are dependent on the wholesalers to buy their desired products.
Another reason why retailers do not choose to buy wholesale products directly from the suppliers is that if they do, they have to pay higher prices than big retailers who obtain lower pricing by buying in enormously large quantities. As wholesalers sell to a large number of retailers and distributors they make huge purchases with the suppliers and hence obtain better pricing form the suppliers just like big retailers. These lower prices are then passed on by the wholesalers to their buyers. This enables the small retailers to remain competitive with big retailers. Hence certain retailers manage to stay in business only because they transact through wholesalers.
In addition to retailers, suppliers also benefit considerably from the wholesalers. Wholesalers help open additional market opportunities for suppliers. Through wholesalers, suppliers are able to get their wholesale products purchased and made available for sale across a large number of retail outlets. Moreover, by virtue of wholesalers, the suppliers can easily gain traction in the market, the reason being that it is quite convenient for the suppliers to convince a small number of wholesalers to stock a new product.
Wholesalers can then in turn convince the small retailers to stock the new product. As a wholesaler can deal with hundreds of small retail customers, the marketing efforts needed to urge the wholesaler to adopt a particular product prove to be much more useful and effective as compared to the effort required to persuade each of the store owners to stock the new product. Hence it can be concluded that the wholesalers serve to be very beneficial for the members of the distribution channel particularly the retailers and suppliers.
by: Palmer Ortiz Female Orgasms - Powerful Tips To Help Your Woman Achieve Stunning Orgasms Every Time Designer Jeans with Style and Function Paradise Punta Cana World Class Escape Guidelines Reservations Packages Meals Plus Much Much More Discount Holidays: Book Your Holidays Through Money Saving Way by:John Williams Gift Baskets For Valentine's Day! Hand Trucks Knowing Which Are Best Choosing A Celtic Wedding Band Online Cab Booking In Uk Thailand Holidays: Making Your Getaway Trip Special How To Create Your Freelance Graphic Design Portfolio Forex Trading Techniques With Regard To Forex Novices What Are All You Need To Know Prior Purchasing An Antenna Set Up For Your Television? Tackling Payroll With Cloud Computing