Hello!
Please explain me this because I can not figure out!
As I see producers sell their stuff to wholesales. Wholesales gather a bunch of different things and then sell it to retailers who communicate with the costumers and sell it to them.
For example a wholesale of stationery gathers pencils, papers, toners etc. Then they sell these in smaller amounts to retailers who after that deliver directly to the offices (to the costumers).
Why don’t wholesale just sell and deliver right away to the costumers and gain the extra money the retailers basically live on?
In: Economics
It’s an entirely different business to market to retail customers in small quantities rather than dealing with ongoing orders of cases and pallets at a time, and it means an entirely different business operations — credit card and cash instead of purchase orders paid by check or wire; entirely different shipping and packaging operations; needing to be set up to collect and remit sales taxes.
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