Explain the types of wholesalers.

Solution

Wholesalers may be classified as follows :

1. Manufacturer wholesaler : He combines the activities of manufacturing goods alongwith the wholesale business. He generally, sells the commodities produced by him on wholesale basis. He does so to reduce the overhead expenses on transport and storage to a large extent.

2. Retailer wholesaler : Such a wholesaler combines his business of wholesale with the functions of a retailer. It implies that he purchases commodities in bulk from the manufacturers and sells them to the ultimate consumers directly.

3. Pure wholesaler : He can also be called the merchant wholesaler. He undertakes no business other than dealing on wholesale basis. He purchases the commodities produced by different manufacturers in bulk and sells them on to retailers. The pure wholesalers may be further subdivided into three groups :

1. Mill supply wholesalers : They sell a wide variety of materials required by the mills for the production of consumer goods for the market. These wholesalers purchase materials from a large number of producers with a view to selling them to the mills.

2. Single line wholesalers : They deal in different varieties in a particular line of product, say, readymade shirts for man produced by different companies, and sell goods to many types of buyers.

3. Complete line wholesalers : They deal in a complete line of goods required for a particular purpose. Trading in stationery and groceries, are the examples of this type.

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