A distributor is a business which is involved in distributing goods and services to the market of buyers or to other sellers. They does it on behalf of the producers although they do not change the name of the original products. They are also called intermediaries or middlemen in the business world.For instance, they therefore take the goods from the socks manufacturer in bulk and resell it to other businesses or final users.
Producers cannot distribute the goods themselves because of some reasons. It may be because they are too involved in production that they cannot kill two birds with one stone or they are not in a near location to the market. This will call for a hand from the intermediaries to do the work for them. It is high time therefore to know that the goods consumed at home may be passing through many hands before reaching your home to be used.
Their advantages include creating utility of the goods. This is through storage, delivery, breaking bulk and selling them to create place, time, form, and possession utilities respectfully. This means that the customer gets the highest amount of satisfaction from the product.
Producers give out their goods in large quantities to the middlemen so that they can resell them on their behalf. Producers do not take part in the market selling because they are in a distant location from the market where they cannot manage to issue the goods to the customers or they may be involved in vigorous production activities that do not give them even the slightest chance to sell their merchandise in their own.
Wholesalers receive the goods in large quantities from the producers. With this they can obtain big discounts on the products. They can store the goods in their warehouses waiting for their demand as they break their bulk into small quantities. Wholesalers have the advantage of creating utility by storing the goods and they can also sell the goods at some discount to the retailers.
Before redistributing the goods however they can break the bulk by reducing it into small sizes. They do not change the names of the producers as they are just to sell for them. Breaking bulk usually involve repackaging the goods into smaller packs. After this they are ready to be purchased by the retailers. However they can decide to sell the goods directly to the customers although it might be difficult at times because they are not evenly distributed like the retailers.
Retailers are the final in most chains of distribution. They are able to reach the market easily because they are near them and they are many with different services. One can therefore say that they are in contact with the final users. Examples of retailers are supermarkets, kiosks and departmental stores.
These retailers serve final consumers with extra services like free delivery of the purchase to their homes and also installation if the equipment requires such. Some socks manufacturer can extend credit facilities to their loyal customers. Distributors have impacted the economy with these wonderful services they offer.
Producers cannot distribute the goods themselves because of some reasons. It may be because they are too involved in production that they cannot kill two birds with one stone or they are not in a near location to the market. This will call for a hand from the intermediaries to do the work for them. It is high time therefore to know that the goods consumed at home may be passing through many hands before reaching your home to be used.
Their advantages include creating utility of the goods. This is through storage, delivery, breaking bulk and selling them to create place, time, form, and possession utilities respectfully. This means that the customer gets the highest amount of satisfaction from the product.
Producers give out their goods in large quantities to the middlemen so that they can resell them on their behalf. Producers do not take part in the market selling because they are in a distant location from the market where they cannot manage to issue the goods to the customers or they may be involved in vigorous production activities that do not give them even the slightest chance to sell their merchandise in their own.
Wholesalers receive the goods in large quantities from the producers. With this they can obtain big discounts on the products. They can store the goods in their warehouses waiting for their demand as they break their bulk into small quantities. Wholesalers have the advantage of creating utility by storing the goods and they can also sell the goods at some discount to the retailers.
Before redistributing the goods however they can break the bulk by reducing it into small sizes. They do not change the names of the producers as they are just to sell for them. Breaking bulk usually involve repackaging the goods into smaller packs. After this they are ready to be purchased by the retailers. However they can decide to sell the goods directly to the customers although it might be difficult at times because they are not evenly distributed like the retailers.
Retailers are the final in most chains of distribution. They are able to reach the market easily because they are near them and they are many with different services. One can therefore say that they are in contact with the final users. Examples of retailers are supermarkets, kiosks and departmental stores.
These retailers serve final consumers with extra services like free delivery of the purchase to their homes and also installation if the equipment requires such. Some socks manufacturer can extend credit facilities to their loyal customers. Distributors have impacted the economy with these wonderful services they offer.
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