Manufacturer produces products that are reached to the consumer through the wholesaler and retailers. Wholesaler receives goods from the manufacturers and sells them to the retailers. So, he performs between manufacturer and the retailer. If you want to know more about the difference between manufacturer, wholesaler and retailer, then find it out below!
Manufacturer
Manufacturers are the sole authority to produce a product. The quality, quantity all depends on the manufacturer. Then with the help of the distributor, they often market and sell their product to the wholesaler.
Wholesaler
The wholesalers are none but the middleman between manufacturer and retailer. They purchase products in huge quantities. Then they sell all of them to the retail businessman. The selling price of their goods are often higher than their purchasing price from the manufacturers.
Retailer
The retailer researched about the market and find out their targeted customers. Then they purchase and sell the trendy products that covers the whole market right now.
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 |
The Last Word
Though motto of the above three is to profit, their functions are different from each other. Hopefully, you understand the difference between manufacturer, wholesaler and retailer.