Function or Services of Wholesaler :-
A wholesaler maintains link between the producer and retailer. He performs various functions for the producer and retailer. Following are the important functions of the wholesaler :
SERVICE OF MANUFACTURER :-
It performs the following service for the manufacturer :
1. Advance Payment :-
Generally a wholesaler makes advance payment to the producer for the product. So a producer receives net cash and saves himself from financial crises.
2. Purchase Large Quantity :-
Wholesaler purchases the goods from the producer in large scale and sells the goods to the retailer in small quantity. It is an advantage for the producer that his total product is sold in few hands.
3. Quick Return :-
A producer receives the payment before the disposal of product in the hands of consumer.
4. Market Information :-
A wholesaler has direct contact with the producer and retailer. Wholesaler knows the demand and likings of the public. He guides the producer that which thing he should produce.
5. Saving in Expenditure :-
In the absence of wholesaler, if producer sells the product in the hands of retailers, he will have to open the sale depart. He will also appoint the staff. But due to the wholesaler, he saves this expenditure.
6. Concentration on Production :-
In the presence of wholesaler, distribution function is performed by him and producer pays full concentration on the production.
7. Storage Facility :-
Wholesaler purchases the goods on large scale from the producer and keeps it in his store. So producers has no problem of storage.
ADVANTAGES TO RETAILER
1. Credit Facilities :-
The wholesaler provides the goods on credit to the retailer whenever he demands. Generally retailer pays the money after selling the goods. So we can say that wholesaler is providing financial aid to the retailer.
2. Business Information :-
The wholesaler also provides business information to the retailer about the production and quality of the product.
3. Advertisement :-
Wholesaler also advertises the product. He displays boards on the roads and shops of the retailer. It saves the expenditure of retailer on advertisement.
4. In Time Distribution :-
Wholesaler is generally near the retailer, so he provides the goods in time to the retailers.
5. Stock for Retailer :-
A retailer never stocks the goods. He purchases the goods in small quantity from the wholesaler. So a wholesaler is also providing the service for storage.
6. Guidance to Retailer :-
A wholesaler also guides the retailer that how he should increase the sale. He gives him various suggestions for his development.
7. Price Stability :-
A wholesaler provides price stability to the market. When the demand is low in the market it keeps the product in his store, so prices may not fall. When demand increases it increases the supply in the market.
8. Grading and Packing :-
Wholesaler collects the different kinds of product in large scale. In some trades he also makes grading and prepares packets for the retailer.