Place- wholesalers Flashcards
What are the advantages of wholesalers for the MANUFACTURERS?
Packaging and displaying of good is carried out by the wholesaler, saving the manufacturer time and costs.
Wholesalers buy in bulk, saving manufacturers from making lots of smaller deliveries.
Wholesalers can promote products to retailers, which saves the manufacturer promotion costs.
The wholesaler carries the risk of products going out of fashion as manufacturers get rid of goods as soon as they are produced.
What are the disadvantages of wholesalers for the MANUFACTURERS?
Manufacturers make less profit as a cut is taken by wholesalers.
The manufacturer loses control of how the product is marketed.
The manufacturer loses control of which retailers the product is sold to.
What are the advantages of wholesalers to RETAILERS?
Retailers can save on storage facilities by buying smaller quantities from wholesalers than they would get from manufacturers.
Retailers can benefit from promotions offered by wholesalers that they may not get direct from manufacturers.
Retailers can trial smaller orders of newer products and not be left with large amounts of unsold inventory.
What are the disadvantages of wholesalers for RETAILERS?
It is more expensive than going directly to manufacturers as wholesalers add on a margin of profit.
Wholesalers offer the same products to retailers’ competitors, so other areas of the marketing mix have to be relied on.
The retailer may miss out on exclusivity deals by not going direct to manufacturers.
