Relationship between wholesaler and retailer function

Difference Between Wholesale and Retail (with Comparison Chart) - Key Differences

relationship between wholesaler and retailer function

One of the main differences between wholesale and retail is in the price of the goods. The wholesale price is always lower than the retail price. A retailer purchases in bulk from the wholesalers and sells the products to the The primary function of a retailer is selling the products to the customers for. Major difference between wholesalers and retailers are as follows: Retailers: Functions and Services Provided by Retailers | Management · 9 Arguments in.

Most goods are sold on credit to the customers of the wholesale business.

relationship between wholesaler and retailer function

The price of purchased on wholesale is lower as it consists of less profit margin. Definition of Retail Retail means selling goods in small lots. Retailers are the middleman between wholesalers and customers.

Business Portal of India : Managing Business : Distribution : Wholesalers and Retailers

They purchase goods from wholesalers in bulk and sells it to the ultimate consumer in small lots. The prices of goods purchased in retail are relatively high. The first and foremost reason behind this is the advertisement cost, and the profit margin is high. Moreover, they include other expenses in the price of goods on a proportionate basis, like the rent of premises, salary to the workers, electricity expenses, etc.

Due to extreme competition, it is quite difficult to retain customers for a long time, so the retailer should know the techniques of handling different kinds of customers.

Moreover, the goodwill of the retailer depends on these parameters. They reject the defective or inferior quality products and pick the best one.

Key Differences Between Wholesale and Retail The points goiven below elaborates the fundamental differences between wholesale and retail trade: Wholesale means the sale of goods in voluminous quantity, at a low price.

relationship between wholesaler and retailer function

Wholesale creates a link between the manufacturer and retailer whereas Retail creates a link between wholesaler and customer. There are wide differences between wholesale and retail price of a particular commodity, i.

A supply chain typically features various middlemen between the manufacturer and the consumer.

Wholesalers Definition | Characteristics and Functions of Wholesalers

The most common in the supply chain are distributors, wholesalers and retailers. The difference between them involves several factors, but can be described simply as a difference in the number of one product they have on hand. Distributors Work With Manufacturers Distributors frequently have a business relationship with manufactures that they represent.

Chapter 13 Retailing and Wholesaling

Many distributors maintain exclusive buying agreements that limit the number of participants or enable distributors to cover a certain territory. Due to the very large amount of each product they have on hand or are able to acquire from manufacturers, distributors tend to work with wholesale representatives that will buy large quantities of one product.

Sometimes, though, distributors work directly with retailers.

relationship between wholesaler and retailer function

Wholesalers Buy from Distributors Wholesalers buy a large quantity of products directly from distributors.

Many distributors provide discounts for a certain number of items purchased or the total amount spent on merchandise. Wholesalers acquire all types of merchandise, ranging from phones, televisions and computers to bicycles, clothing, furniture and food.