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What are the functions of wholesalers to producers?

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Functions of wholesalers to producers are;

  • The wholesalers buy goods from the producers and sell them to retailers. This relieves producers the problem of distribution.
  • The wholesalers relieve of producers the risk of fall in price due to excess supply by buying from producers regularly.
  • Saves the producers of the problem of storage by buying in large quantities.
  • Wholesalers engage in product promotion e.g advertising hence relieving of producers.
  • Wholesalers buy goods from producers on cash hence provide finance to producers which enable them to continue operating.
  • Wholesalers carry market research about demand which they pass the information to producers.

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