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 : Functions of wholesaler
Teaching aids : PPTs

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Objectives

On completion of this period, you would be able to

 List and explain functions of wholesaler

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Recap

In the previous class, we have learnt about

 Role of wholesaler
 Services of wholesaler to manufacturer

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Functions of wholesaler
Wholesaler performs a number of functions in
marketing of goods. These functions are
explained below in detail.
•Assembling and buying
 Assembling means bringing together
stocks of different manufacturers
producing the same line of goods
 Buying comprises the activities such as
selection of manufacturers, placing
order and procuring stock
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Functions of wholesaler
1. Storage
 As there is a gap between the production and
consumption, wholesalers keep the goods
assembled in their warehouses till they are sold
to the retailers
3. Transportation
 Wholesaler carries goods from the place of
production to his warehouse and he also carries
goods to the retailers destination
 He carries the goods either through his own fleet
or through hired CCP104.81
carriers on most economic lines5
Functions of wholesaler

4. Financing
 Wholesalers grant credit on liberal terms to the
retailers and reduce the financial burden of the
manufacturers by extending financial support to
them
5. Risk-Bearing
 Wholesalers bear the risk of loss of change in
prices, damage, deterioration in quality,
pilferage, theft, fire etc.,

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Functions of wholesaler

 They also bear the risk of non payment or

under-payment by the retailers
6. Grading and packing
 Grading is the process of sorting out the stock
in terms of different sizes, quality, shapes etc.,
 They also break open the packed cases,
divide the large lots into smaller lots and
repack to suit the requirement of retailers

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Functions of wholesaler
7. Market information
 Wholesalers provide relevant and up-to-date information
to the retailers and manufacturers
 He collects information from retailers about changes in
consumer tastes, fashions, habits etc., and pass it on to
the manufacturer
 He gives information to the retailers about the new types
of goods arrived into the market
8. Pricing
 He undertakes the responsibility of fixing the price of a
product if market conditions demand for it

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Functions of wholesaler

9. Promotion
 He performs advertising and sales promotion
activities on behalf of the company to promote the
sale of the products
10. Disbursement and selling
 He undertakes the responsibility of disbursement
of goods when retailers buy from him.
 He has his own sales personnel to obtain the
orders from retailers and deliver the goods to
them
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Summary

 Assembling and buying

 Storage
 Transportation
 Financing
 Risk-Bearing
 Grading and packing
 Market information
 Pricing
 Promotion
 Selling and Disbursement
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Frequently asked questions

1. What are the functions of a wholesaler

in detail?
2. Give any four functions of the
wholesaler?

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