The importance of wholesalers is quite significant in the Marketingof goods or services and that is why they connect with almost all manufacturing products. Following are some of important functions that are played by the wholesalers.
1) Selling and Promoting :-
Wholesalers facilitate the manufacturers in the selling and promotion of their products by using the contacts at a low cost. These buyers are more influenced by the famous wholesalers than by the distant manufacturers.
2) Bulk Breaking :-
Wholesalers purchases in large quantities and sell in smaller units and hence break the bulk for the convenience of the customers.
3) Importance in Agriculture Goods :-
The farmers produce in small quantities. Again, they are scattered over a wide area. The wholesaler plays an importanat role in assembling the goods of various small producers and then selling it to the retailers.
4) Importance in foreign trade :-
It is difficult for small manufactures to enter in foreign trade because of weak bargaining power. Since the wholesaler deals in large quantities, he can favourably negotiate on the terms and conditions with the large competitions in the foreign market.
5) Generate Employment :-
The wholesale directly and indirectly provides employment. He facilitates the distribution of goods. Efficient distribution creates more demand, which in turn increases production. Increase in production results in higher employment in the society.
6) Warehousing :-
Wholesalers also provide warehousing facilities to reduce the Inventory costs and risks of manufacturers and customers.
7) Transportation :-
The wholesalers are much closer to the customers as compared to the manufacturers, so they can provide quick transportation services.
8) Financing :-
Wholesalers also provide financin to its buyers by allowing them credit. They also make immediate orders and quick bill payments to the manufacturers.
9) Risk Bearing :-
The damaging, theft and spoilage costs are taken by the wholesaler by absorbing the relative risks associated with products.
10) Market Information :-
Information about New Products, competitors and price developments are given by the wholesalers to customers and manufacturers.