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

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