2.1.2.2 Why Use a Wholesaler?
Completion requirements
There are so many different types of wholesalers .... Why do we need one? How do we choose?
Often, there are many different transactions required before goods are exchanged with end consumers. These transactions might involve financing, promotion, legal issues, warehousing, or transportation, for example. Wholesalers complete these transactions on behalf of producers.
Regardless of the specific type of wholesaler a producer uses, wholesalers either improve exchange efficiency, or provide the specialized skills required to successfully complete the transactions involved in the exchange process.
You can eliminate wholesalers, but you can't eliminate the functions they perform. Somebody has to complete these tasks. Wholesalers can be the most cost-effective alternative.
Often, there are many different transactions required before goods are exchanged with end consumers. These transactions might involve financing, promotion, legal issues, warehousing, or transportation, for example. Wholesalers complete these transactions on behalf of producers.
Regardless of the specific type of wholesaler a producer uses, wholesalers either improve exchange efficiency, or provide the specialized skills required to successfully complete the transactions involved in the exchange process.
You can eliminate wholesalers, but you can't eliminate the functions they perform. Somebody has to complete these tasks. Wholesalers can be the most cost-effective alternative.