Services / Advantages To The Procedures:

SERVICES / ADVANTAGES TO THE PROCEDURES: 1- Concentration on production: The wholesalers provide full opportunity to the producer to concentration on production activities. The producer need not have sale organization. The supply of goods in small quantities is taken over by the wholesalers.

2- Facilitates large scale production: The wholesalers buy goods in large quantities from the producer. This facilitates the producer to produce goods in large quantities and avail of the economics of large scale production.

3- Information about consumer Behaviuor: The wholesales provide valuable information to the producer about the consumer’s behavior to the goods in the market, the changes in tastes and fashions and also the latest demands of the consumers.

4- Regulation of production: The wholesalers normally place orders for the purchase of goods well in advance to the producers of goods. This helps the producer to plan and regulate their production as to how much and of which quality, the goods are to be produced.

5- Relieving producers from keeping stocks: The wholesalers are normally make forward dealing about the supply goods with the producers. The producers are thus relieved of keeping the stocks and also the worry of sale of goods.

6- Financial assistance: The wholesalers may take advance payments to the producer for the purchase of goods. They also provide soft term (at a low rate of interest) loan to the producer.

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