Some marketing experts say that wholesalers have important contribution to the development of marketing. They provide valuable services to marketing. So, wholesalers should not be eliminated from distribution channel.
The arguments against elimination of wholesalers can be presented as follows:
The arguments against elimination of wholesalers can be presented as follows:
1. Valuable services
Wholesalers keep on providing different valuable services to producers and retailers in marketing. Not any other can perform more economically and skillfully than wholesalers can do in marketing. Wholesalers make financial arrangement, provide credit facility, bear risk in distribution process, they maintain balance between production and consumption as well as store of goods. So, if they are eliminated from distribution channel, several difficulties will arise.
2. Marketing Certainty
As wholesalers take all responsibilities for sales and distribution of goods, producers become free from the difficulties and troubles of marketing their products. As a result, producers can concentrate their mind on production.
3. Specialization
The present age of business demands specialization and labor in every field. Wholesalers have fulfilled such demand in the field of marketing. They should not be eliminated because they have gained special knowledge and experience in sales and distribution of goods.
4. Difficulties to Consumers
If wholesalers are eliminated, consumers will feel difficulties to bet necessary goods to satisfy their needs. Producers produce goods of different types and qualities, in such situation it will be difficult for the consumers to find necessary goods directly contacting different producers.
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5. No Possibility Of Cost Reduction
The argument that elimination of wholesalers brings reduction in cost and the decrease in price of goods is not logical. This cannot be found in practice.
The above mentioned arguments are presented by the persons who are against elimination of wholesalers from the distribution channel.
