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!
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.
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.
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
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
Material cost+ Cost of making+ Overhead+ Profit= X
X+ Overhead+ Profit = Y
Y+ Overhead+ Profit = Z
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.
Salma Hasin the author of this site completed her BSc. in Textile Engineering (Wet Processing Engineering). She wants to share her knowledge to help students in their studies and businessman & entrepreneurs in their businesses in making wise decisions fast.