The Wholesaler

Question 1

What is a wholesaler?

Answer 1

The wholesaler acts as the middleman between the producer and the retailer

Question 2

List and explain the 4 services offered by the wholesaler.

Answer 2

Breaking bulk: buy in large quantities from the producer and sells in smaller quantities to the retailer

Hold stocks: They do this because not many retailers have the storage capacity for large quantities

Bearing risks: Takes the risk of buying in larger quantities because prices could fall and fashion could change while goods are still in their possession

Advertise: Advertise new products for consumers so that it will make them want to buy them

Question 3

State the services offered by the wholesalers for the producer and retailer.

Answer 3

For the producer, the wholesaler reduces transport costs, advises them of current market trends, grade, package, and brand the goods and makes large production possible by ordering in large quantities

For the retailer, the wholesaler pre-packs goods ready for their shelves, open until late in the evening, supplies small quantities to suite their needs, and offers choices of products from the producers