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Wholesalers versus Retailers?

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  • Wholesalers versus Retailers?

    In the business chain of production, the wholesalers and retailers are the integral part of the flow because without them playing their important roles in the flow, the producer would have his products stockpiled without being able to get them to the final consumers, and thus making the wholesalers and the retailers indispensable in business. Now, my question is, between the wholesaler and the retailers, who has more power and influence in the flow chain of production?

  • #2
    From my standpoint Id say that retailing is the smaller part or the end part of the supply chain and wholesaling is the starting point. In terms of profitability, I would go for retailing since I have had that experience before. The problem with wholesaling is the spoilage when the product is perishable like household items and kitchen items.

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    • #3
      When it comes to profit making, there is no way it wouldn't be retailing as they tend to sell with more added amount higher than what wholesalers add to sell. The only issue is that it takes time to turn over on retail sales but wholesaling turns faster since they push out more supplies. I would go for retailing if I have a huge customer base, if not I would prefer wholesale.

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      • #4
        I have been in a retailing business before and Id say it is micro economics that you should apply. In other words, you have to think small because your clients are the small ones particularly individuals. With wholesaling it is a different kind of marketing for the clients are big companies that in turn sell the products they buy from you.

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        • #5
          Wholesale clients are faced with more competition especially when the suppliers are much, and if your product does not stand out to be unique, different and of high quality, there would always be slim opportunity of having more customers to supply to on daily basis depending on how they sell out their stock. Retailers are more like operating within their comfort zone which actually helps them to sell more.

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