Page 224 - SST Class 07

Producers : The producers supply goods location of the shop, its appearance, display of
directly to retailers who in turn sell them to goods because they sell only a specific type of
consumers. No wholesaler in involved. items and their customers are generally retailers

Wholesalers : The producers supply goods in or other businesses who purchase the goods for
bulk to the wholesalers who in turn directly sell the purpose of resale. These things do not matter
these goods in small quantities to the ultimate to them at all.
consumers. No retailer is involved. In wholesale business, the wholesaler gives more
Wholesalers and retailers the producers supply emphasis on the quantity of goods, not on the
goods in bulk to the wholesaler’s shop sell goods quality. For starting a wholesale business, there is
in small quantities to the retailers. The retailer a huge capital requirement as the business size is
then sells these goods to the consumers. large. It does not require any publicity or adver-
tisement.
Agent : Wholesalers, retailers and the producers
supply goods in bulk to the agent. The agent in However, the customers of a wholesale business
turn sells the goods to the wholesalers. The are spread in various cities, towns or even in
wholesalers then sell the goods to the retailers. different states. Most goods are sold on credit to
The retailers sell the goods to the consumers. the customers of the wholesale business. The
price of purchased on wholesale is lower as it
TYPES OF TRADES
consists of less profit margin.
Buying and selling of goods and services within a
Retail Marketing
country is called internal trade or home trade. It
includes wholesale and retail. Retail trade refers to buying of goods from
wholesalers or manufacturers and selling them
Wholesale Marketing
directly to consumers. They generally deal in a
Wholesale refers to the selling of goods to the
variety of items. They do not have direct links
customers like retailers, industries and others in
with manufacturers as they purchase products
bulk, at a low price. It is a type of business in
from the wholesalers. They act as middlemen
which goods are being purchased from the
between the wholesaler and the consumers.
producers by the wholesaler in big lots and then
Retailers may at times extend credit facilities to
the bulk is split into comparatively smaller lots.
the customers, as in the case of televisions,
Finally, they are repacked and resold to the other
washing machines and other such items. In cities
parties.
and towns, the retailer engages salespersons to
Wholesalers do not pay much attention to the
assist customers in buying. Some retailers are
now switching over to self-help services, where
the customer can directly go and pick up the
items she or he wants.

Have you ever noticed the same product being
sold for different prices at different places? This is
because some retailers offer discounts on certain
products. Others offer additional services like
credit facilities, gift wrapping, alterations, home
delivery and so on. These are some techniques
employed by retailers to promote sales.
Wholeseller Shop
Social Science-7 224