Wholesalers represent an intermediate link between producers and beneficiaries. Wholesale trade does not end the merchandise circulation, but is part of it. At first glance, it may seem that wholesale trade is an unnecessary link, which determines a higher price by increasing the length of the distribution channel, but the reality shows that this kind of trade is a necessity, both for the producer and for the beneficiary.
For the producers, trading their products via wholesalers is an advantage because:
- They can sell their products in large quantities
- The effort to look for clients is significantly diminished
- There are no special concerns regarding packing the goods – some can be delivered in bulk, or in large containers
- They can remain focused on production
- There is no need to worry about developing effective distribution policies
For retailers, purchasing merchandises such as liquor store supplies through wholesalers is definitely more cost-effective. There are discounts for purchasing in bulk, it is no longer necessary to make contracts with several manufacturers, and product assortments are very rich in wholesalers’ warehouses and match better the expectations of individual customers. In addition, one of the attributions of a wholesaler is the transformation of industrial assortment into commercial assortment, which is very convenient.