Why Most Stores prefer buying from Wholesalers than Distributors?
"Why Most Stores prefer buying from Wholesalers than Distributors"
A company distributor is a bound business person as s/he is bound by company norms like :
A company distributor is a bound business person as s/he is bound by company norms like :
-Maintaining fixed number of days stocks.
-Not dealing in similar products of other companies e. g a Frito Lays distributor can not sell chips or snacks of any other company.
-Achieving company sales targets every month.
So you see a distributor is a bit restrained in conducting his business.
A wholesaler is not restrained by any company norms. A, wholesaler is more free in conducting business the way he or she likes.
Wholesalers are free to deal in as many products as possible.
Wholesalers are also not bound by any target of company.
A Wholesaler deals and trades into multiple items and products unlike a distributor who more or less deals in limited number of products.
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So for convenience stores it makes sense to but products from wholesalers as they can products from them at competitive rates than distributors. Wholesalers negotiate hard on prices due to their bulk buying capacity.
A convenience store gets to buy different products from one wholesaler than from a distributor as wholesaler trades in multiple products.
Third benefit of buying from wholesaler is that it is more easy to return defective or unsalable products to wholesaler than to a distributors. Distributors more often are not good at replacing unsalable products.
All these convenience factors make store owners to buy from wholesalers. These convenience factors also make wholesalers do good business.
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