DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : A.Srinivas Kumar
Designation : Senior lecturer
Branch : DCCP
Institution : Government polytechnic for
women, Nandigama
Year/semester : I year
Subject code : Ccp-104
Topic : Distribution network
Duration : 50 mts.
Sub topic : Role of wholesaler and services of
wholesaler to manufacturer
Teaching aids : PPTs
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Objectives

On completion of period, you would be able to

 Explain the role of the wholesaler
 Functions of wholesaler to manufacturer

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Role of wholesaler

 Wholesaler is a merchant middleman between

the producer and retailer
 He provides goods at a reasonable price
 He creates stability in prices
 He helps to raise the standard of living of the
people
 He renders valuable services to the
manufacturers retailers and also to the society

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Services of Wholesaler to Manufacturers

Wholesalers provide a number of services to

Manufactures, which are as follows:

a) Economies of Large Scale Production

 Purchases the goods in large quantities

and
thus enables the manufacturer to go for
large scale production
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Services of Wholesaler to Manufacturers…

b. Concentrate on Manufacturing
 Relieves manufacturer of taking number of
small orders of retailer
 Manufacturer can concentrate on production

c. Maintenance of Sales Force

 Wholesaler reduces the expenses of a
manufacturer to train, hire and pay a large
sales force of its own
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Services of Wholesaler to Manufacturers…
a. Storage
 Wholesaler maintains his own warehouses
 Manufacturer is relieved from the trouble of
maintaining godowns
b. Price stabilization
 Wholesalers help in the price stabilization
 They stock goods during the slack season
 sell them during the period of peak demand
 He maintains the stability in prices by making
adjustments between
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demand and supply 6
Services of Wholesaler to
Manufacturers…
a. Financial assistance
 Wholesalers provide financial assistance
to the manufacturer, primarily by assuring
credit risk and paying bills promptly
 He also advances money to the
manufacturer whenever situation demands
b. Sales promotion
 Wholesalers also undertake sales
promotion programs on behalf of the
manufacturer

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Services of Wholesaler to Manufacturers…

h. Product servicing
 Wholesaler prevents the manufacturer from
having to set up service centers. Product
servicing is undertaken by the wholesaler only
i. Market information
 Wholesaler collects information about taste,
fashion, attitude of the customers through
retailers and provide reliable data for new
product ideas, product modification and
competitors’ actions
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Services of Wholesaler to Manufacturers…

a. Assists in production
 Wholesaler assembles raw materials and
other resources required for production
and supply them in bulk to the
manufacturer
b. Advance orders
 Wholesaler gives advance orders to the
manufacturer helps to frame production
policies and programmes in advance

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Services of Wholesaler to
Manufacturers…
a. Economy in Distribution.
 Wholesaler undertakes the distribution of
goods to retailers on a large scale than the
manufacturer. Hence, the manufacturer is in
a position to minimize the costs of distribution

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Summary
In today’s lesson we have learnt

 Role of wholesaler
 Wholesaler is a merchant middleman who
operates between the producer and retailer
 Services of wholesaler to manufacturer
 Economies of Large Scale Production
 Concentrate on Manufacturing
 Maintenance of Sales Force
 Storage
 Price stabilization
 Financial assistance
 Sales promotion etc.,
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Frequently asked questions

1. What is the role of the wholesaler?

2. What are the functions of wholesaler to
the manufacturer?

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