Advantages And Disadvantages

Advantages and disadvantages of the small wholesalers in recent initiation of the association to a large retailer can be useful because the image can benefit from being a customer of a distributor of prestige and can quickly achieve a large customer base. The main disadvantage of the wholesalers is that they add to the product cost and decrease the profitability of the products they sell. The wholesale margins required in addition to those granted to retailers, but these margins are ultimately rewarded for their services. Additionally, distributors can have great power to negotiate with the manufacturers whose products are distributed because they assume a large volume of total sales of the manufacturer. It also has the negative effect of concentrating the demand, so the loss of the dealer or threaten insolvency sales volume and total revenue of the manufacturer.However, merchants have basic links of the distribution channel to strengthen the distribution of goods or services, by significantly increasing the capillarity of a distribution channel and maturity.