The concept of “wholesale distribution” includes all activities related to the sale of goods and services to retailers. Wholesalers buy from manufacturers and sell to retailers, as well as to other wholesalers or industrial consumers. Why can`t manufacturers sell directly to retailers? Well, that is mostly because wholesalers found ways to fulfill several important functions in the distribution channel:
– Sale and promotion: wholesalers help manufacturer sell their products to a large number of end-users, for discounted prices.
– Large variety of products: wholesalers can select and configure product packages according to customer needs, saving the time and effort.
– Selling the products in various quantities, depending on customer needs, wholesale bar supplies are in big demand in most places.
– Storage: wholesalers can store the merchandise and provide product inventory, reducing inventory costs and risks for suppliers and customers.
– Transportation: wholesalers can deliver products quickly to customers, being closer to them than the manufacturers.
– Financing: wholesalers often sell on credit and finance their own suppliers by ordering and paying on time.
– Undertaking risks: wholesalers often assume the risks relate to theft, destruction, deterioration or aging that may occur during storage and transportation.
– Providing market-related information: wholesalers can provide valuable information to suppliers about competition, new products and market developments.
– Management and counseling services: wholesalers are equipped to help retailers training their staff, improving the appearance and organization of their stores, developing efficient marketing and inventory systems.