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Capital the method eliminates trips to congested

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capitalThe method eliminates trips to congested stores and lengthy waits queuesDo not require large storage space for goods.Disadvantages of Mail order storesAdvertising and postage costs may increases the price of goodsThere is lack of personal contact between the seller and the buyerThere is limited variety of goods on offerCustomers do not have the opportunity of inspecting goods before buyingThere are no credit facilitiesThe method is only suitable for those who can read and write
45 |B u s i n e s s S t u d i e s F o r m 1 - 4T e a c h e r D a n i e l O n l i n eShould there be a problem with the post office.e.g industrial action likestrikes, the business may be affectedDifficult to operate in places where post office services are poor orunavailableChances of being defrauded are high.FUNCTIONS OF RETAILERSThese can be discussed as services rendered to consumers, wholesalers andproducersServices Rendered to consumersi)Offers credit facilities:Retailers are in close contact with theconsumers and some may give them credit facilitiesii)After-sales services:Retailers who sell technical goods e.g. cars,electronics e.t.c may offer after sale services to consumers e.g. transport,installation repair e.t.ciii)Provision of variety of goods:Retailers stock a wide variety of goodsfrom different wholesalers and manufactures enabling the consumers tohave a wide choice.iv)Advising consumers:Retailers may offer advice to consumers onchoice and use of productsv)Availing needed goods:Retailers make goods available to consumers atthe right time and placevi)Breaking bulk:Retailers sell goods to consumers in convenientquantitiesvii)Accumulating bulkviii)Stabilizing prices:By ensuring that goods are continuously available toconsumersServices Rendered to wholesalersi)Retailers store goods and relieve the wholesalers the burden of storinggoods and the storage costsii)They relieve the wholesalers the burden of transportationiii)Retailers advice wholesalers on market trends(on consumersdemand)and give valuable informationiv)They help in distribution of goods to the consumersv)They help in breaking bulk on behalf of the wholesalervi)They finance wholesalers to continue with their operations throughpaying for the goods
46 |B u s i n e s s S t u d i e s F o r m 1 - 4T e a c h e r D a n i e l O n l i n evii)They relieve the wholesaler of some risks that arise from the storage ofgoods such as theft, fire and accidents.Services Rendered to producersi)Through wholesalers retailers provide very vital information tomanufactures about market demandii)They advertise goods on behalf of producersiii)They sell and market goods to consumers. This relieves themanufactures the task andrisk of retailingiv)They store goods on behalf of the producersv)They break bulk on behalf of producers to consumersvi)They finance producers by buying and paying cashWHOLESALE TRADEWholesaling involves selling goods in large quantities to traders for resale. Awholesaler is a trader who buys goods in bulk from producers/manufacturesfor resale to retailers at a profit.

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Term
Summer
Professor
NoProfessor
Tags
Business, Management, Entrepreneurship, Daniel Online

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