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Friday, July 16, 2010

Important Functions of Retailer

From the customer point of view, the retailer serves him by providing the goods that he needs in the required assortment, at the required place and time.

1. Arranging Assortment: manufacturers usually make one or a variety of products and would like to sell their entire inventory to few buyers to reduce costs. Final consumers, in contrast prefer a large variety of goods and services to choose from and usually buy them in small units.
 
2. Breaking Bulk: to reduce transportation costs, manufacturer and wholesalers typically ship large cartons of the products, which are then tailored by the retailers into smaller quantities to meet individual consumption needs 

3. Holding stock: Retailers maintain an inventory that allows for instant availability of the product to the consumers. It helps to keep prices stable and enables the manufacture to regulate production. 

4. Promotional support: small manufacturers can use retailers to provide assistance with transport, storage, advertising, and pre- payment of merchandise.

The Retailer also serves the manufacturers by

1. Accomplishing the function of distributing the goods to the end users 

2. Creating and Managing a channel of information from manufacturer to the consumer

3. Act as a final link in the distribution chain 

4. Recommending products where brand loyalty is not strong or for unbranded products.

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