The business market works in a peculiar way. This is because of the fact that there are many parties that are involved in handling goods before they reach the final user.From socks manufacturer, the product can pass through two to three hands from the producer before reaching the customer. However, it is because of these many hands that the market looks an easy place where you can practically get all the products that you want.
There are now intermediaries in the market better called distributors. They are responsible for taking goods from the producers and later dispatch them to other businesses to be resold or directly to the customers. Without them it will be harder to reach the goods produced from the producer location which may be a far location.
This intermediaries can be many in the market. There are manufacturers who take goods from producers as raw materials to produce other goods and services and later sell them to the final users. In this case the goods that are made go to the ownership of the manufacturers who now become the largest distributors.
Some of the distributors in the market are wholesalers and retailers. They form a chain of distribution with the producer in that goods pass from the producers through these middlemen to get to the final consumer. However, the other parties apart from the retailer may decide to sell their products directly to the final users.
It all depends on the type of products that the producer produces. If they produce non-perishable goods they can comfortably use the middlemen to reach the wider market but if they produce perishable goods, they better supply it to the buyers in the market on their own because the products may spoil while undergoing exchanges between different businesses that distribute goods. Products like fish, vegetables and flowers do not last for a long time without getting spoil.
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.
One demerit associated with the chain of distribution is the final prices of the goods are scaring. The middlemen pass all their expenses to the final customer leaving the prices exploitative high. The time alone the goods take to reach the customers may be long as repackaging and breaking of bulk is involved.
Distributors and socks manufacturer are therefore very important in every society. Without them buyers may be forced to spend more money and time to get those goods. They need to be appreciated for the services they do towards making a good economy to everybody.
There are now intermediaries in the market better called distributors. They are responsible for taking goods from the producers and later dispatch them to other businesses to be resold or directly to the customers. Without them it will be harder to reach the goods produced from the producer location which may be a far location.
This intermediaries can be many in the market. There are manufacturers who take goods from producers as raw materials to produce other goods and services and later sell them to the final users. In this case the goods that are made go to the ownership of the manufacturers who now become the largest distributors.
Some of the distributors in the market are wholesalers and retailers. They form a chain of distribution with the producer in that goods pass from the producers through these middlemen to get to the final consumer. However, the other parties apart from the retailer may decide to sell their products directly to the final users.
It all depends on the type of products that the producer produces. If they produce non-perishable goods they can comfortably use the middlemen to reach the wider market but if they produce perishable goods, they better supply it to the buyers in the market on their own because the products may spoil while undergoing exchanges between different businesses that distribute goods. Products like fish, vegetables and flowers do not last for a long time without getting spoil.
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.
One demerit associated with the chain of distribution is the final prices of the goods are scaring. The middlemen pass all their expenses to the final customer leaving the prices exploitative high. The time alone the goods take to reach the customers may be long as repackaging and breaking of bulk is involved.
Distributors and socks manufacturer are therefore very important in every society. Without them buyers may be forced to spend more money and time to get those goods. They need to be appreciated for the services they do towards making a good economy to everybody.
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