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THE WHOLESALER — Economics Keypoint

THE WHOLESALER

The wholesaler is one of the middlemen that deal with bulk purchase. The wholesaler buys in bulk and also sells in bulk.

FUNCTIONS OF THE WHOLESALER

  1. The wholesaler buys goods produced directly from the manufacturers at a large quantity and sells to the retailers.
  2.  He breaks the bulk of goods produced.
  3.  He provides storage facilities/warehouses where goods bought or purchased can be stored.
  4.  He provides capital to the manufacturers for more production.
  5.  He also gives advice to the producer with respect to the type of goods to be produced.
  6.  The wholesaler offers credit facilities to the retailer who does not have sufficient capital to provide for all his needs.
  7.  The wholesaler carries out the responsibility of grading products produced.

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