Why Is Wholesale Trade Preferred Over The Retail Trade?
Whenever we talk about business, we can never forget the retailers and Wholesalers
. There is a proper supply chain through which whole trading is done. A retailer is a person who buys different products and goods from wholesaler and sells them to end customers. On other hand the wholesaler is a middle man who purchases products from manufacturer in bulk quantity and stores them in his warehouse and then sells those goods to retailers. Both retailers and wholesale suppliers are dependent on each other because without retailer, a wholesaler will be unable to sell products which are lying in huge quantity in his warehouse. On other hand without wholesaler, a retailer will be unable to purchase goods at low bulk rates. Somehow he will get goods from other retailers but for sure they will supply him at high rates then he ultimately has to sell at more high rates to end customers and customers always prefer low rates.While doing a comparison wholesaler still have some plus points which give him preference over retailer. A good wholesaler has a respectable reputation in that particular area and if he losses a retailer then surly he will get another easily. While in the case of retailer, he has no reputation in the eyes of wholesaler because the quantity of retailers is more than wholesalers. Besides wholesaler has his particular field of expertise and range, if he is dealing with clothing business then he will have a perfect strong grip over all clothing accessories. Retailer on other hand dont have any particular field he purchases clothing material, jewelry, toys, bags, etc. retailer is kind of jack of all trades but master of none.
Wholesale businesses have their particular and fix profit range and dont have to argue or negotiate with retailers. While many retailers keep the prices very high for end customers and have to argue and negotiate with them. They have no particular net yearly income; it varies from season to season. The other reasons that wholesale business is preferable are that you only have to be away from home occasionally. You will enjoy taking orders and making many of the same time and you will get profits over night. Others will sell your work or product to public and the last big benefit is that wholesalers dont have to spent money on shop like retailers had to. A wholesaler can have his office and warehouse at a place which is not necessarily located at the centre of a metropolitan.
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