DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : A.Srinivas Kumar
Designation : Senior lecturer
Branch : DCCP
Institution : Government polytechnic for
women, Nandigama
Year/semester : I year
Subject code : Ccp-104
Topic : Distribution network
Duration : 50 mts.
Sub topic : Indirect channel of distribution
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Objectives

After completion of period, you would be able

to :
 Define wholesaler
 Explain various types of wholesalers
 Explain the characteristics of
wholesaler

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Recap

In the previous class, we have learnt

 Definition of indirect channel
 Different types of indirect channels

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Wholesaler

Definitions :

 “One who sells to other middle men

institutions and industrial buyers, usually
in fairly large quantities”

 “A true wholesaler is himself neither a

manufacturer nor a retailer but acts as a
link between the two”

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Fig.1

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Types of Wholesalers

There are three types of wholesalers namely

1. Manufacturer wholesaler
2. Retail wholesaler
3. Merchant wholesaler

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Manufacturer Wholesaler

 Manufacturer wholesaler undertakes the

manufacturing of the goods and he may sell the
goods produced by him.
 He combines manufacturing with the
wholesaling business
 He carries the wholesale business through
sales offices or sales branches

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Retail Wholesaler

 Retail wholesaler is both a wholesaler and a

retailer
 He buys goods in large quantities from the
manufacturers and sells them in small
quantities to the ultimate consumers

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Merchant Wholesaler

 Merchant wholesaler is one who buys goods in

large quantities from the producer and sells
them in small quantities to the retailers but not
to the ultimate consumers
 He acts as a link between the manufacturer
and the retailer

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Characteristics of a wholesaler

 He deals with large quantities of goods

 He specializes in one line of product, generally
 He sells goods to the retailers in small quantities
 He makes use of several agents in the
distribution of goods

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Characteristics of a wholesaler…

 He offers credit facility to the retailers

 He provides financial help to the manufacturers
and retailers
 He undertakes warehousing of goods till they
are sold to the retailer

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Summary
In today’s lesson we have learned that

 “One who sells to other middle men,

institutions and industrial buyers, usually in
fairly large quantities”
 There are three types of wholesalers
namely
1. Manufacturer wholesaler
2. Retail wholesaler
3. Merchant wholesaler

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Summary…

 Characteristics of wholesaler:
 He deals with large quantities of goods
 He is specialized in one line of product.
 He sells goods to the retailers in small
quantities

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Frequently asked questions

1. What are the definitions of wholesaler?

2. What are the various types of wholesalers?
3. What are the Characteristics of wholesaler?

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