edu.uptymez.com
ARGUMENT AGAINST ELIMINATION OF WHOLESALER
Those who believe that the wholesaler trade is essential give the following/ argument.
- STORAGE OF GOODS
edu.uptymez.com
In case wholesalers are eliminated, have to maintain large stock and bear the risk of price fluctuations . but retailers are generally to bear this burden due to limited capital.
- SEASONAL PRODUCTS
edu.uptymez.com
Some product are produced through out the year but their demand arise only during a particular season.if wholesalers are eliminated, producers will have to keep huge bulk of stock like rain coats.
- FINANCING
edu.uptymez.com
In case the wholesaler are eliminated , retailer will have to invest more capital in business.
- NECESSARY FOR SMALL PRODUCERS
edu.uptymez.com
Small manufacturers or producer are not in better position in nglish-swahili/distribution” target=”_blank”>distribution of their product. Due to the large number of producers and retailer with small capital, wholesalers still dominate the field of nglish-swahili/distribution” target=”_blank”>distribution of goods
- UNDIVIDED ATTENTION
edu.uptymez.com
If wholesaler are eliminated .the producers will have to under take the nglish-swahili/distribution” target=”_blank”>distribution of his goods in the small lots to the large number of widely scatered retailers. as a result, he will not be able to concentrate fully in production.
- SAVING COSTS
edu.uptymez.com
Wholesaler are expert in the task of nglish-swahili/distribution” target=”_blank”>distribution . therefore they take expenses through more efficient marketing of goods . they maintain sale forces which call up on retailers regularly . their expenses are lower than those of manufacturers who sell directly to the retailers by eliminating the wholesalers costs of nglish-swahili/distribution” target=”_blank”>distribution may increase.
⇒ CONCLUSION DRAWN UP
By eliminating wholesaler , his function can not be eliminated .this function will have be performed by either producer / manufacturer or retailers
Therefore the elimination of wholesaler is desirable only:
In those case where producer or wholesaler can perform these function more efficiently than wholesalers therefore wholesalers are essential links in nglish-swahili/distribution” target=”_blank”>distribution of all such commodities where as producer and retailers are small and unable to consume the burden of wholesaler trade.
SERVICES OF A WHOLESALER TO THE PUBLIC
- By holding large stock and releasing them regularly, a wholesaler helps the consumers to get stead supplies through frequently replacement.
- He plays an important role in keeping price stable which is obviously advantages to the consumers /public .
- He helps to make the process of nglish-swahili/distribution” target=”_blank”>distribution be smooth.
edu.uptymez.com
THE SOURCE OF SUPPLY OF A WHOLESALER
The source from which a wholesaler obtains his supplies of course depends to the particular time of business but in general the source of supplies are as follows:
- Home grower for perishable goods
- Commercial sales e.g. coffee ,tea, etc
- Home manufacturers for manufactured goods
- Import agent for over seas products
- Products exchanged for commodities e.g. grains , materials etc.
edu.uptymez.com
TYPES OF WHOLESALERS
Wholesalers can be classified according to the areas saved by them or according to the goods offered by them . moreover according to the services performed by them .hence we have:
a. ACCORDING TO GEOGRAPHICAL AREAS
- National wide wholesalers
edu.uptymez.com
These are wholesalers who are established in all major towns in order to save all parts of the country .This types of wholesalers operate in large scale like Tanzania training cooperation (TTC).
- Regional or local wholesalers
edu.uptymez.com
These wholesalers operate only in particular area of the country and may offer wide range of goods or a specified range of goods like (TTC)
- Export and import wholesalers
edu.uptymez.com
These are wholesalers specialized in foreign trade , they may sell out side the country (export ) or buying from outside the country (import)
b. ACCORDING TO THE GOODS OFFERED BY THEM
- General wholesalers
edu.uptymez.com
These wholesalers offer the varieties of goods in the number of field e.g. groceries ,hardware ,frozen food, sports goods and even house holds.
- Specialized wholesalers
edu.uptymez.com
these are wholesalers who carry a particular range of goods .this kinds of wholesalers usually offer great variety of goods but which are in one line of production or field of production e.g. books, soft drink , hardware etc.
a. ACCORDING TO THE SERVICES RENDERED BY THEM
- Full services wholesalers
edu.uptymez.com
These are wholesalers who provides many services which are required to push up sales those marketing services are like to buy and assembling of goods , storage , transportation etc full services wholesalers are such as general wholesalers ,export and import wholesalers and specialized wholesaler
- Limited services wholesalers
edu.uptymez.com
These are those who perform particular function and leaves the other . this means they only perform few function and these are as follows:
− Mail order
− Truck wholesalers
− Drop shippers /dark jobber
− Cash and carry wholesalers
− Risk or pack of jobber.
PROBLEMS OF WHOLESALE TRADE
Traders in East Africa experience a number of problem that prevent them not only from maximizing their profit but also from providing the types of magnitude of services to the customers that are available in the more commercial developed countries, some of them are :
- Small scale operation
edu.uptymez.com
Due to the lack of finance most traders in E. Africa operate in very small size which means they can not buy their goods in bulk and hence fail to get large discounts.
- Lack of capital
edu.uptymez.com
Many traders face the problems of un sufficient money to run smoothly the business . This makes /results traders to conduct mostly on cash basis rather than credit.
- Poor transport and communication
edu.uptymez.com
This makes difficult in the process of transport and nglish-swahili/distribution” target=”_blank”>distribution of goods and services to reach the users /consumers.
- Lack of training
edu.uptymez.com
Many people who enter in the business world thinking that trade is simple “give and take affairs ” soon discover that are ill equipped to handle the intricacies of the professional.
CHAIN OF DITRIBUTION
The following steps would usually be involved in the nglish-swahili/distribution” target=”_blank”>distribution of goods and services from the producers to the final consumers:
- The producers may sell his product either to the whole seller or to a large scale retailer.in both cases, the quantities involved are very huge and some may operate their own retail outlets.
- The wholesaler also sells goods and services to the retailers.The quantity in which they sell to them (retailers) is always smaller than the quantity in which they buy.
- Some small scale retailers may purchase their goods from large scale retailers or retail shops copareted by manufactures themselves.
- The retailers sells goods to the final consumers.
edu.uptymez.com
CHAIN OF DISTRIBUTION
