The wholesalers who have occupied special place in marketing are of different types. They fulfill various needs of producers and retailers. On the basis of taking and not taking legal rights and ownership, wholesalers can be classified in three as merchant wholesalers, agent wholesalers and manufacturer's sales and branch office.
The main types of wholesaling institutions can be explained as follows:
1. Merchant Wholesalers
Merchant wholesalers purchases goods, take their ownership, bears risk and sell them to industrial users and retailers. They take ownership of goods and transfer ownership to other by selling them. In the classification of wholesalers, merchant wholesaler occupies the first place. Generally, we know the same to be wholesaler.
The main types of wholesaling institutions can be explained as follows:
1. Merchant Wholesalers
Merchant wholesalers purchases goods, take their ownership, bears risk and sell them to industrial users and retailers. They take ownership of goods and transfer ownership to other by selling them. In the classification of wholesalers, merchant wholesaler occupies the first place. Generally, we know the same to be wholesaler.
2. Agent Wholesalers
Different agents and brokers also perform the role of functional middlemen in distribution channel. They perform limited functions in marketing for commission. They make contract for purchase and sale of goods, but do not take ownership. They may sometimes, take ownership of the goods, which they need to distribute. Agents are helpers in sale. They make arrangements for sale and purchase remaining between producers and retailers and other wholesalers.
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3. Manufacturer's Sales Branches And Offices
Manufacturer's sales branches and offices also function in the distribution channel. Mostly, producers take help of middlemen to sell their products. But some producers open sales branches and offices by themselves for selling their products. Such sales branches or offices provide credit facilities, delivery services, promotional help and other services to customers like wholesalers, retailers, industrial buyers etc.
