Wholesalers - class-XI

A warehouse is a building for storing goods. Warehouses are used bymanufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the outskirts of cities, towns or villages.

Wholesalers are middlemen between the manufacturers and the retailers. They increase the cost of marketing and price of the products goes up. The consumers have to pay higher price. By eliminating wholesalers, prices of the products will decrease and the consumer shall benefit. The manufacturers will be earning more profit on account of lesser prices of the products.

Elimination of Wholesalers:

1. Wholesalers are middlemen between the manufacturers and the retailers. They increase the cost of marketing and price of the products goes up. The consumers have to pay higher price. By eliminating wholesalers, prices of the products will decrease and the consumer shall benefit. The manufacturers will be earning more profit on account of lesser prices of the products.

2. Wholesalers are unnecessary links between manufacturers and retailers. Their presence in the distribution channel obstructs the smooth and quick delivery of goods from the manufacturers to the ultimate consumers. If they are eliminated, the unrestricted supply of goods takes place from the manufacturers to the retailers and the consumers.

3. During the slack seasons and scarcity in business activities demand, the wholesalers resort to hoarding and stocking of goods and sell them at exorbitant prices charging excessive profits.

4. In certain regions, the wholesaler is the sole distributor of the product. He occupies the monopolistic position and exploits both the retailers and the consumers by charging higher prices if the wholesalers are eliminated it would be in the best interest of both the retailers and the consumers.

5. Big and established retailers such as large departmental stores can afford to make their own purchases directly from the manufacturers without approaching the wholesaler. The wholesalers are easily eliminated.

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer.

Middlemen include wholesalers, retailers, agents and brokers. Wholesalers and agents are closer to the producers. Wholesalers buy goods in bulk and sell them to the retailers in large quantities. Consumers may also choose to bypass the intermediaries and buy goods directly from the producers.

The advice given by someone who has studied a subject thoroughly or who is very skilled at a particular job. You should seek expert advice before going into business. If you are travelling to a malarial area, get expert advice before you set off.

They help move goods between producers and retailers and the advent of modern technologies help them do this more efficiently. A wholesale merchant operates in the chain between producer and retail merchant. Some wholesale merchants only organize the movement of goods rather than move the goods themselves.

The main exchange functions are buying and selling. Both buying and selling functions have their primary objectives as the negotiation of favorable terms of exchange. This function is concerned with seeking out the sources of supply, assembling of products, and activities associated with purchase.

A mercantile agent is a person who is appointed by those in business to act on their behalf or to represent them in dealing with other persons. The person on whose behalf he acts as an agent is known as the 'Principal'.

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services.

A mercantile agent is a person who is appointed by those in business to act on their behalf or to represent them in dealing with other persons.

A mercantile agent is a person who is appointed by those in business to act on their behalf or to represent them in dealing with other persons. The person on whose behalf he acts as an agent is known as the 'Principal'.

Tradable commodities consist of basic goods used in commerce that are often interchangeable with other goods of the same type. 

A del credere agency is a type of principal-agent relationship wherein the agent acts not only as a salesperson or broker for the principal, but also as a guarantor of credit extended to the buyer.

The stock of a corporation is all of the shares into which ownership of the corporation is divided. In American English, the shares are commonly called stocks. A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares.

Transport or transportation is the movement of humans, animals and goods from one location to another. In other words the action of transport is defined as a particular movement of an organism or thing from a point A to the Point B. Modes of transport include air, land, water, cable, pipeline and space.

Marketing Support Service. A Marketing Support Service would typically include some or all of the the following elements Stationery & Marketing Collateral management  design, print, logistics. Website portfolio design and development. Advertising Campaign media planning / buying, creative, delivery & management.

Large scale production refers to the production of a commodity on a large scale with a large sized firm. It requires huge investments in plant and machinery. Large scale production can be carried out if the market size is large and expanding.Large scale firms are division of labor and production and sale of goods in large quantities. They cater to a large market. The industrial revolution laid the foundation of the factory system. The factory system which extensively used machinery and adopted division of labor made large scale production possible.

The following are some of the motives of large scale production.

1. Desire for economy.
2. Desire for increase in sales.
3. Desire for a large customer base.
4. Desire for large profits.
5. Desire to become a global company.
6. Desire for economic power.
7. Desire for continuous growth and expansion.
8. Desire to increase demand.
9. Desire to overcome competition.
10. Desire to achieve monopoly status.
11. Desire for achieving long term profitability.

An agent middleman (like a broker or commission agent) facilitates transactions but does not take legal title to the goods they handle.

Wholesalers often provide credit to retailers, which allows retailers to stock goods without needing to pay upfront, thus managing with less working capital.