Published on December 12th, 2019
Wholesalers are an important part of the supply chain. Fashion wholesaler is actually a salesperson who tries to get retail customers to buy clothing, accessories, and footwear of his company and if he is not a manufacturer, he gets retailers for the products he bought from any company. In this wholesale brand clothing business chain, wholesalers are of great importance.
They sell their products to retailers in bulk quantities. They also allow the retailers to buy the products at less price rather than if he buys a single item.
There are so many pros of being a wholesaler but when there are pros you cannot miss the cons.
Pros Of Being A Wholesaler
There are so many advantages of being in the fashion wholesalers UK business that are beneficial for consumers and retailers. Some of them are:
- Availability of goods on time
- Provides employment
- Economic growth
- Uniformity in prices
- Increase in production
1. Availability Of Goods On Time
Wholesalers help the retailers to get their desired products on time at their stores. They ensure that the customers of their retailers can purchase wholesale fashion clothing without any hassle.
2. Provides Employment
Wholesalers provide another advantage to society. They provide employment opportunities to the people directly or indirectly.
They hire people as their employees to carry on their supply or distribution services to supply their products to different retailers or stores. They create job opportunity which are ultimately good for society.
3. Economic Growth
Wholesalers make a fine contribution to economic development because they help in more production, more distribution, more consumption and availability of employment opportunities, etc.
4. Uniformity Of Prices
Wholesalers try to maintain equilibrium between supply and demand. This helps them keep the prices stable and the same in different areas. They also make sure to provide cheap wholesale dresses to the retailers.
5. Increase In Production
As wholesalers demand goods in large quantities for the requirements of the market. This forces the manufacturers to produce the products at large scale.
This increase in production leads to the availability of very cheap clothes UK collections. Consequently, society enjoys the benefits of large businesses.
Cons Of Being A Wholesaler
Where there are advantages of being a wholesaler, there are some disadvantages, too. These need to be tackled effectively to prosper in business:
- Mixing of goods
- Black marketing
- Vested interests
- Exploitation of manufacturers
1. Mixing Of Goods
Some consumers and retailers have reported that some of the wholesalers mix inferior quality products with superior quality products to earn more profit.
This not only affects the customers or consumers but it also is not healthy for themselves, too. Since they will lose their repute and business in the future.
2. Black Marketing
Sometimes some of the wholesalers get involved in unnecessary and illegal activities. They store some goods illegally. They create an artificial shortage for showing that the products are not enough and then cause an increase in prices.
3. Vested Interests
Some wholesalers do not introduce new and better products because of their vested interests. It proves a source of loss of the manufacturers and customers as well as consumers, too.
The wholesalers are sometimes responsible for breaking the link between manufacturers and consumers. Wholesalers don’t tell producers about the exact likes and dislikes of the product user.
This puts the producers in problems for not receiving the right information. This results in the production of goods which are not in demand and cause problems for both the ends.
5. The Exploitation of Manufacturers
Wholesalers always have a huge amount of money at hand to run the business. They help manufacturers to run their business by paying in advance or as the loan.
In return, the wholesalers demand for prices of their own choice that can cause loss to the manufacturers. They take the advantage of the situation and manipulate the producers which is not a healthy practice.
So, take the plunge while taking care of all the above information and enjoy a healthy business ride.