What are the important Characteristics of a Wholesaler?

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i) Wholesalers purchase and assemble goods in large quantities.

ii) They deal in one commodity or one line of products, ex. : Fans, food grains, electrical fittings, furniture etc.

iii) They are financially healthy. This makes them to store the commodity in , large quantities and also keep them for larger duration.

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iv) They provide credit facilities to the retailers.

v) Often, they advance funds to the producers for production of goods.

vi) Their profit margin is very low. Their profit margin is the difference between the price at which they buy from manufacturers and the price charged to the retailers. As they operate in large volumes, they charge a very reasonable price.

vii) Usually they appoint agents and brokers, through whom they deal with their customers.

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viii) Wholesalers advertise their commodities. The benefit of this goes to manufacturers and retailers.

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