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Differences in functions between a wholesaler and retailer
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[QUOTE="blessingc, post: 238681, member: 73446"] We were taught in schools the chains of distribution and we know their functions, they function differently. The wholesalers has always been the middle men between the manufacturers and the retailers. The wholesalers buy bulk goods from manufacturers or distributors sell them to retailers in smaller quantities. Retailers buy smaller amounts of bulk goods from wholesalers or distributors. Then they sell them directly to the consumers. There are alot of differences between the wholesalers and the retailers. The wholesalers deal with limited types of products unlike retailers who sells varieties to meet the needs of the consumers. For example there can be a delivery person or a vehicle who delivers bread of a particular company as a middleman between the manufacturers to the retailers so, they can sell to the consumers and this middleman sells just the bread if that company to different retailers while the retailers buy bread from more than two companies just to give their customers a variety of breads to choose from. Another difference is wholesalers need alot of capital to start up their business while the retailers can use limited capital to start up a small business. While the retailers deal directly with consumers the wholesalers do not. [/QUOTE]
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