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
Because it’s a totally different ball game. B stands for supplier,C stands for customer/consumer. a B to B business operates differently than a B to C. Delivering directly to consumers changes operations drastically in terms of cost, speed, facilities, manpwer, etc.
Also don’t forget the customer experience aspect of it. B to B doesnt deal with consumers, so they dont look at customer experience, they just see numbers.
Think of it like this…. would you rather manufacture 10,000 candles and sell them all in 5 days? Or keep them in your warehouse and depend on customers to want it and order it?
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