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manufacturers need not block their capital in the stocks. Sometimes they also advance money
to the producers for bulk orders placed by them.
(iv) Expert advice:
As the wholesalers are in direct contact with the retailers, they are in a position to advice the
manufacturers about various aspects including customer’s tastes and preferences, market
conditions, competitive activities and the features preferred by the buyers. They serve as an
important source of market information on these and related aspects.
(v) Help in marketing function:
The wholesalers take care of the distribution of goods to a number of retailers who, in turn, sell
these goods to a large number of customers spread over a large geographical area. This relieves
the manufacturers from many of the marketing activities and enables them to concentrate on
the production activity.
(vi) Facilitate production continuity:
The wholesalers facilitate continuity of production activity throughout the year by purchasing
the goods as and when these are produced and storing them till the time these are demanded
by retailers or consumers in the market.
(vii) Storage:
Wholesalers take delivery of goods when these are produced in factory and keep them in their
warehouses. This reduces the burden of manufacturers of providing for storage facilities for the
finished products. They thus provide time utility.
Services to Retailers
The important services offered by manufacturers to the retailers are described as below:
(i) Availability of goods: Retailers have to maintain adequate stock of varied commodities so
that they can offer variety to their customers. The wholesalers make the products of various
manufacturers readily available to the retailers. This relieves the retailers of the work of
collecting goods from several producers and keeping big inventory of the same.
(ii) Marketing support: The wholesalers perform various marketing functions and provide
support to the retailers. They undertake advertising and other sales promotional activities to
