Difference Between Manufacturer Wholesaler & Retailer

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.

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