Functions

Various functions performed by a wholesaler are explained below.

1) Buying and Assembling :-

The wholesaler purchases goods in large quantities from different manufacturers and assembles them at one place and stores them in his warehouse and resell to the retailers.

2) Warehousing :-

By preserving the goods received from different manufacturers in stores, the wholesaler performs the function of warehousing. The storage of goods is needed on account of time lag between production and consumption of goods.

3) Grading and Packaging :-

The assembled goods are graded in accordance with their quality and packed in different containers before supplying to the retailers. In this manner, the wholesaler performs important marketing functions of grading and packing.

4) Transportation :-

The wholesalers purchase goods from manufacturers and carry them to his godowns and then supply the same to the retailers. He may employ his own vans or hire vehicles for carrying the goods on account of bulk purchases. They can avail of economies in freight.

5) Financing :-

The wholesaler provides credit facilities to the retailers and manufacturers. They sometimes give advance to the manufacturers for the goods to be received later. By selling goods on credit they help the retailers.

6) Risk Bearing :-

A wholesaler performs the marketing function of risk bearing also. Goods are exposed to many risks such as destruction and spoilage in warehouses on account of many avoidable and unavoidable reasons. The wholesaler is also confronted with many other risks viz., sudden changes in demand of the product, prices of the products going down and non recovery of payment from retailers in (bad debts) etc.

7) Providing Marketing Information :-

The wholesaler imparts valuable information to both the manufacturer and the retailer. He keeps informing the manufacturer about the tastes, preferences, likes and dislikes of the customers. He gathers this information from the retailers.

At the same time he informs the retailer about the goods produced by the manufacturer. In order to gather the information the wholesaler conducts various market surveys.

8) Dispersion of Goods :-

The wholesalers sell goods to largely scattered retailers. When the stock of retailers is exhausted, they approach the wholesalers for purchasing the goods. In this process, the wholesaler provides valuable service in the disposal of goods. The wholesaler also undertakes extensive advertisement and also sales promotion techniques for the dispersal of the goods.