Difference between manufacturer, Wholesaler & Retailer
Criteria | Manufacturer | Wholesaler | Retailer |
Buyer | Wholesaler | Retailer | Customer |
Business volume | Large | Moderate | Small quantity |
Risk involved | High | Moderate | Low |
Investment required | High | Moderate | Low |
Promotional activities | No need | Less important | Very important |
Deals in | Different product | Limited products | Different products |
Meaning | Converts raw materials into finished goods using its machine or labor | Buys finished goods from manufacturer and sale them to retailer at large quantity | Buys finished goods in large quantities and sell them in small quantities and sell them in small quantities to customer |
Creates link between | Linked with wholesaler | Manufacturer and retailer | Wholesaler & Customer |
Competition | Low | Low | High |
Price variation | Material cost+ Cost of making+ Overhead+ Profit= X | X+ Overhead+ Profit = Y | Y+ Overhead+ Profit = Z |
Selling price | Low | Moderate | High |
Customer dealing | Don’t directly | Don’t directly | Directly |