Storage of Goods, Credit Facility, Personal Services and Risk Bearing (For CBSE, ICSE, IAS, NET, NRA 2022)

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All retailers deal with the customers of varying tastes and temperaments. Therefore, they should be active and efficient in order to satisfy their customers and also to induce them to buy more.

Retailers buy and assemble varieties of goods from different wholesalers and manufacturers. They keep goods of those brands and variety which are liked by the customers and the quantity in which these are in demand.

Functions of Retailers

Storage of Goods

To ensure ready supply of goods to the customer retailers keep their goods in stores. Goods can be taken out of these stores and sold to the customers as and when required. This saves consumers from botheration of buying goods in bulk and storing them.

Credit Facility

Although retailers mostly sell goods for cash, they also supply goods on credit to their regular customers. Credit facility is also provided to those customers who buy goods in large quantity.

Personal Services

Retailers render personal services to the customers by providing expert advice regarding quality, features and usefulness of the items. They give suggestions considering the likes and dislikes of the customers. They also provide free home delivery service to customers. Thus, they create place utility by making the goods available where ever they are demanded.

Risk Bearing

The retailers have to bear many risks, such as risk of:

  • Fire or theft of goods
  • Deterioration in the quality of goods as long as they are not sold out
  • Change in fashion and taste of consumers.

Display of Goods

Retailers display different types of goods in a very systematic and attractive manner. It helps to attract the attention of the customers and also facilitates quick delivery of goods.

Supply of Information

Retailers provide all information about the behaviour, tastes, fashions and demands of the customers to the producers through wholesalers. They become a very useful source of information for marketing research.

Distinction between Wholesalers and Retailers

You have studied about wholesalers and retailers. You might have noticed that both of them differ in their style and function. Let us find out these differences.

Table of Distinction between Wholesalers and Retailers
Buy goods in large quantitiesBuy goods in small quantities.
Buy goods directly from producersGenerally, buy goods from the wholesalers.
Deals in limited variety of goods.Deals in wide range of products.
Require more capital to start and run the businessRequire less capital to start and run the business.
Sells goods for resale purpose.Sells goods for consumption
No direct contact with consumersDirect contact with consumers.
No special attention is given to

decoration of shop.

In order to attract the attention of customers retailers give more attention to decoration of shop.

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