The business market works in a peculiar way. This is because of the fact that there are many parties that are involved in handling goods before they reach the final user.From socks manufacturer, the product can pass through two to three hands from the producer before reaching the customer. However, it is because of these many hands that the market looks an easy place where you can practically get all the products that you want.
Distributors come in handy to help buyers get the goods from the producer. They go to the producers and buy the goods from them in large economies and later resale in the market to either other businessmen or directly to their customers. They have different advantages in the society with the work they do as they will be discussed herein.
This intermediaries can be many in the market. There are manufacturers who take goods from producers as raw materials to produce other goods and services and later sell them to the final users. In this case the goods that are made go to the ownership of the manufacturers who now become the largest distributors.
Producers give out their goods in large quantities to the middlemen so that they can resell them on their behalf. Producers do not take part in the market selling because they are in a distant location from the market where they cannot manage to issue the goods to the customers or they may be involved in vigorous production activities that do not give them even the slightest chance to sell their merchandise in their own.
Wholesalers receive the goods in large quantities from the producers. With this they can obtain big discounts on the products. They can store the goods in their warehouses waiting for their demand as they break their bulk into small quantities. Wholesalers have the advantage of creating utility by storing the goods and they can also sell the goods at some discount to the retailers.
Before redistributing the goods however they can break the bulk by reducing it into small sizes. They do not change the names of the producers as they are just to sell for them. Breaking bulk usually involve repackaging the goods into smaller packs. After this they are ready to be purchased by the retailers. However they can decide to sell the goods directly to the customers although it might be difficult at times because they are not evenly distributed like the retailers.
One demerit associated with the chain of distribution is the final prices of the goods are scaring. The middlemen pass all their expenses to the final customer leaving the prices exploitative high. The time alone the goods take to reach the customers may be long as repackaging and breaking of bulk is involved.
These retailers serve final consumers with extra services like free delivery of the purchase to their homes and also installation if the equipment requires such. Some socks manufacturer can extend credit facilities to their loyal customers. Distributors have impacted the economy with these wonderful services they offer.
Distributors come in handy to help buyers get the goods from the producer. They go to the producers and buy the goods from them in large economies and later resale in the market to either other businessmen or directly to their customers. They have different advantages in the society with the work they do as they will be discussed herein.
This intermediaries can be many in the market. There are manufacturers who take goods from producers as raw materials to produce other goods and services and later sell them to the final users. In this case the goods that are made go to the ownership of the manufacturers who now become the largest distributors.
Producers give out their goods in large quantities to the middlemen so that they can resell them on their behalf. Producers do not take part in the market selling because they are in a distant location from the market where they cannot manage to issue the goods to the customers or they may be involved in vigorous production activities that do not give them even the slightest chance to sell their merchandise in their own.
Wholesalers receive the goods in large quantities from the producers. With this they can obtain big discounts on the products. They can store the goods in their warehouses waiting for their demand as they break their bulk into small quantities. Wholesalers have the advantage of creating utility by storing the goods and they can also sell the goods at some discount to the retailers.
Before redistributing the goods however they can break the bulk by reducing it into small sizes. They do not change the names of the producers as they are just to sell for them. Breaking bulk usually involve repackaging the goods into smaller packs. After this they are ready to be purchased by the retailers. However they can decide to sell the goods directly to the customers although it might be difficult at times because they are not evenly distributed like the retailers.
One demerit associated with the chain of distribution is the final prices of the goods are scaring. The middlemen pass all their expenses to the final customer leaving the prices exploitative high. The time alone the goods take to reach the customers may be long as repackaging and breaking of bulk is involved.
These retailers serve final consumers with extra services like free delivery of the purchase to their homes and also installation if the equipment requires such. Some socks manufacturer can extend credit facilities to their loyal customers. Distributors have impacted the economy with these wonderful services they offer.
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