Trader of merchandise controls the vendors pricing

[Alexandoy]

I have made a little study on trading business which is also called middleman here. The trader is the main link between the buyer and supplier of consumer products. One example is the farm harvest of vegetables. The trader buys from the farm and delivers it to the market vendors. With perishable goods, the pricing is controlled by the trader and the vendors are in a bad position. The usual mark-up of a vegetable trader is 50% of the capital but sometimes it goes as high as 100% for a good margin. The profitability lies in the relationship of the supplies and demands.