Importance Of Middleman In Commercial Activities
Importance Of Middleman In Commercial Activities
Monday, July 6, 2020
IMPORTANCE OF MIDDLEMAN IN COMMERCIAL ACTIVITIES: Under the modern system of the large scale of production and distribution, the middleman plays an important role in the distribution of goods and become all the more inevitable along with the growing complexities of production. Whenever any new scheme or line of production is taken up, the manufacturer will not like to carry on his production on a large scale, but he will also have a start ahead of demand so that the commodities when finished will have to create a demand thereof. So, the modern manufacturer will have to take different risks and hardly left any time to look after aspects of production and distribution, therefore, they have some people specialized in different aspects of production and distribution. Thus the entrepreneurs require the assistance of specialized people like brokers, agents, wholesalers, distributors, retailers, etc. The success of any industrial activity these days depends on the joint efforts of the producers and all these types of specialized middlemen. The middleman, occupies such an important position in the modern marketing system, that any producer can hardly carry on business without them. It is through the middleman that the producers get a regular supply of their raw materials, labor, and also capital in times, of need. They relieve the producers of their function about the distribution of their products. By making arrangements for distribution of the commodities over a wide market, they serve practically every part of the world wherever the products are wanted.
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