ELIMINATION OF WHOLESALERS
Wholesalers performs several useful functions and render many vital services . they provide a ready set outlets often to manufacturers and services as the source of stead supply of goods to retailer .therefore they provide a variable link between producers and retailers.
ARGUMENT IN FAVOUR OF ELIMINATION OF A WHOLESALER FROM CHAIN OF DISTRIBUTION
Some people insist that wholesaler exploit producer and retailer for this case they should be eliminated and their function should be taken over by producer and retailer .
The following are the arguments given in favour of elimination of wholesalers:
- Production in price
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Wholesaler charges the substantial margin of profit add to cost of nglish-swahili/distribution” target=”_blank”>distribution .this result into higher price payable by the ultimate consumer. hence price payable by consumer can be reduced by elimination of the wholesaler.
- Manipulations
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Many wholesaler indulge in mal-practices such holding and adulteration .the push up the price by creating scarcity of goods such mal-practice can be eliminated by cancelling the function of wholesaler
- Faster nglish-swahili/distribution” target=”_blank”>distribution
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Wholesaler are more transfer agents wholesaler up unnecessary made block in the process of nglish-swahili/distribution” target=”_blank”>distribution .their interference in the nglish-swahili/distribution” target=”_blank”>distribution channel obstruct the smooth and quick flow of goods from producer to retailers elimination of wholesaler goods can be supplied to consumer very quickly.
- Better alternatives: Large scale retailer such as chain store , departmental ,supermarkets etc. have adequate fund and space to buy goods in bulk directly from producer . they can bear risk and promote sales on large scale therefore they do not need the services of wholesalers.
- Perishable commodities:Thats to say when goods sold by wholesaler are perishable and cannot be stored for a long period of time.
- Purchasing by oder:Incase retailers or consumers buy by ordering directly.This makes a wholesaler jobless.