job for wholesalers

The population of the world has increase a great deal in recent years. With the increase in population, the channels of goods distribution have lengthened. The producer of goods reaches the final consumers through several channels. One of these channels is the wholesaler who is the subject of this research. By the end of this article the reader should be able to:

1.      Define the term wholesaler

2.      Identify the position of the wholesaler in the channel of distribution

3.      Explain the function of a wholesaler.


Meaning of the wholesaler


Wholesaler refers to the business of buying goods in large quantities from manufacturers to sell in smaller quantities to the retailer, therefore shopkeepers and traders.

The individuals or organization that provides the distribution services in known as the wholesaler. In the economy today, there are several wholesalers who are appointed by one or more industries to distribute their products. The products they distribute are either raw materials for the production of consumer goods or finished goods for consumption.

The distributors of beer, soft drinks, cement, vehicles, radios and television sets are known as wholesale traders. Even the woman or man who goes to the source, for example the food stuff from the farm in large quantities and brings it to the urban areas to sell is in the wholesale business.

The Position of the wholesaler 

The wholesaler is a” middleman”. He is a bridge between the producer and the retailer, the wholesaler as an individual or organization with large amount of capital buys in very large quantities from the producer to resell to retailers. Some producers find it difficult to play the roles of manufacturers and distributors at the same time. As a result, an intermediary link between the manufacturer and those who need the product to satisfy their needs becomes very important. These channels of goods distribution follow this pattern:

The producer or manufacturer deals directly with the wholesaler. The wholesaler is in direct contact with the retailer, who in turn has direct contact with the consumer who requires the goods to satisfy his needs.


Functions of the wholesaler


Services to the manufacturer:


1.      Since the wholesaler is in the distribution business, he or she represents the producer in several capacities: which is distribute goods bought from the manufacturer, and services the products he distributes. Such services are especially in the installation or repair of equipments. These services are mostly found in the non consumable goods industry, for goods such as refrigerators, office equipments, household goods and electrical appliances.

2.      As the manufacturer’s agent, he does the marketing of goods. These allow the manufacturer to plough all his capital into production. Since production is a high risk business, the manufacturer is able to concentrate on reducing the risk of the business.

3.      The wholesaler moves goods from where they are produced to his warehouse. By doing this he creates room for the producer to stock new products or goods as they leave the assembly line.

4.      The wholesaler’s services are a source of additional capital for the manufacturer. In most nations today, the producers get a large sum of money from the wholesaler before he is appointed as a distributor of its products. This further reduces the risk of loss to the producer.

5.      The marketing and advertising work is done by the wholesaler. This means that the wholesaler employs marketing experts, who help in the sales promotion of products.

6.      The wholesaler represents the interests of the producer and those of the retailer; as a result, he plays a liaison role between them.

Services to retailer:


1.      The wholesaler sells in smaller quantities to the retailers

2.      The wholesaler may help to transport goods from his warehouse to the to the retailers place of business

3.      The wholesaler can grant small retailers credit to enable them to buy goods for distribution to the final consumer

4.      The wholesaler may sometimes send his salesmen to explain the features of the product he sells to the retailers.


Size of the wholesaler

The wholesaler business can be divided into two, large and small.


The large wholesaler:


The large wholesalers supply every kind of business. Since most of the goods needed in most country come from importation from other countries, only wholesalers with large amount of capital can buy in large quantities for distribution in the country. The large wholesaler sells to other wholesalers, retailers and consumers. Some of this wholsale organization sells only to smaller wholesalers and retailers.

In most countries some of these wholesalers own assembly plants where imported goods are assembled. Since a majority of them are large wholesalers their product names are popular in the country. Large wholesalers sell very many products. A large wholesale organization can import a variety of product and at the same time; buy from manufacturer in his country for distribution.


The small wholesaler :


The small wholesaler is found all over the country in one kind of trade or another. They generally trade in one particular product at a time. He may deal in different brands from large wholesalers, for example beer and soft drinks. Since his capital is limited, he cannot afford to have his own brand name because of the expense which may be involved in advertising and the product management service.

How to become a wholesaler

If you're looking to get into the wholesale business, there are a few things you need to know. First, you need to find a niche market that you can serve. Next, you need to build relationships with manufacturers and distributors. Finally, you need to create a business plan and find funding.

The wholesale business is all about selling products in bulk to retailers. To be successful, you need to find a niche market that you can serve. There are many different markets you can choose from, so it's important to find one that you're passionate about. Once you've found your niche, you need to build relationships with manufacturers and distributors. These relationships will help you get the best prices for your products. Finally, you need to create a business plan and find funding. Funding will help you get started and grow your business.

Related search:

The retailer: types and functions

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