The business market works in a peculiar way. This is because of the fact that there are many parties that are involved in handling goods before they reach the final user.From socks manufacturer, the product can pass through two to three hands from the producer before reaching the customer. However, it is because of these many hands that the market looks an easy place where you can practically get all the products that you want.
Producers cannot distribute the goods themselves because of some reasons. It may be because they are too involved in production that they cannot kill two birds with one stone or they are not in a near location to the market. This will call for a hand from the intermediaries to do the work for them. It is high time therefore to know that the goods consumed at home may be passing through many hands before reaching your home to be used.
Their advantages include creating utility of the goods. This is through storage, delivery, breaking bulk and selling them to create place, time, form, and possession utilities respectfully. This means that the customer gets the highest amount of satisfaction from the product.
Some of the distributors in the market are wholesalers and retailers. They form a chain of distribution with the producer in that goods pass from the producers through these middlemen to get to the final consumer. However, the other parties apart from the retailer may decide to sell their products directly to the final users.
Wholesalers are common distributors in the product market. As usual they are businesses in business for business hence they obtain goods from producers or manufacturers in bulk. They have very large depots or warehouses where they store the goods they buy in bulk. They with time release the goods with orders from other businesses who are usually the retailers.
Wholesalers get their goods from the producers in large scale. Such a purchase involves large trade discounts. They then break the bulk of these goods so that they are sell able to retailers who deliver the goods to the final customer. Wholesalers are known for their large warehouses that they keep the goods until they are needed hence creating place utility.
One demerit associated with the chain of distribution is the final prices of the goods are scaring. The middlemen pass all their expenses to the final customer leaving the prices exploitative high. The time alone the goods take to reach the customers may be long as repackaging and breaking of bulk is involved.
These retailers serve final consumers with extra services like free delivery of the purchase to their homes and also installation if the equipment requires such. Some socks manufacturer can extend credit facilities to their loyal customers. Distributors have impacted the economy with these wonderful services they offer.
Producers cannot distribute the goods themselves because of some reasons. It may be because they are too involved in production that they cannot kill two birds with one stone or they are not in a near location to the market. This will call for a hand from the intermediaries to do the work for them. It is high time therefore to know that the goods consumed at home may be passing through many hands before reaching your home to be used.
Their advantages include creating utility of the goods. This is through storage, delivery, breaking bulk and selling them to create place, time, form, and possession utilities respectfully. This means that the customer gets the highest amount of satisfaction from the product.
Some of the distributors in the market are wholesalers and retailers. They form a chain of distribution with the producer in that goods pass from the producers through these middlemen to get to the final consumer. However, the other parties apart from the retailer may decide to sell their products directly to the final users.
Wholesalers are common distributors in the product market. As usual they are businesses in business for business hence they obtain goods from producers or manufacturers in bulk. They have very large depots or warehouses where they store the goods they buy in bulk. They with time release the goods with orders from other businesses who are usually the retailers.
Wholesalers get their goods from the producers in large scale. Such a purchase involves large trade discounts. They then break the bulk of these goods so that they are sell able to retailers who deliver the goods to the final customer. Wholesalers are known for their large warehouses that they keep the goods until they are needed hence creating place utility.
One demerit associated with the chain of distribution is the final prices of the goods are scaring. The middlemen pass all their expenses to the final customer leaving the prices exploitative high. The time alone the goods take to reach the customers may be long as repackaging and breaking of bulk is involved.
These retailers serve final consumers with extra services like free delivery of the purchase to their homes and also installation if the equipment requires such. Some socks manufacturer can extend credit facilities to their loyal customers. Distributors have impacted the economy with these wonderful services they offer.
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