The major middlemen are wholesalers and retailers who performs activities relating the purchase and sales of goods in the processes of moving the goods from the producer to the final consumer.
- WHOLESALER
The wholesaler is one who buy from the producer in large quantities or in bulk and resell to retailers and consumers in smaller quantities.
Functions of a wholesaler
- Buy goods in large quantities
- Provision of warehousing
- Acts as a middleman between the producer and the retailer.
- Reduces fluctuation in price, he stocks goods in his warehouse which enables him to supply goods to the retailer at all time by these it avoids shortage and help stabilize market prices.
- Advertises goods for the producer using post informative advertisement.
- He informs the producer on the market demand of his product. This helps the producer to determine the exact quantity to be produced in order to reduce the risk of over production.
- By making prompt payment to the producer as he buys in large quantities and also buy in advance.
- He does the complete process by labling prepackaging and branding of the goods.
- THE RETAILER
Functions
- They provide credit facilities
- Provide information
- Provide after sale service to their customers such as repairs, maintenance etc.
- Provide good at convenience point. Both retailer shop are positioned at accessible point that help to shorting the distance the consumers have to travel to get the goods and services free of charge.
- The retailer have personal conduct with is customers.
- They have personal interest for his customers.
- He buys goods in large quantities from the wholesaler and sell to the customer in small quantities.
SMALL SCALE RETAIL UNITS
This are retailer with very small capital, small business out lays and are very easy to manage.
- HOWAKING : This is a retail trade where howkers carry goods on their heads travelling from place to place to sell they sell to consumers at doors steps.
- MOBILE SHOPS : These are small retail shops that are moved from place to place with the use of motovans whell barrow, motocycles to customers at different places. They display their goods through play of music or ringing of bells.
- PEDDLERS : These are retailers whose carts to carry goods from place to place sell.
- STALL HOLDERS : These are roadside or streat traders. These traders erect or build civil structured by the roadside or who range shops or store along busy streats to sell provisions.
- MARKETS TRADERS : These are traders who meet a specific selected site or location to buy and sell food stuffs. Their stuffs are bought from farmers and wholesaler.
- UNIT SHOP OR CORNERS SHOPS : Theses are retailers who owned and managed their ownshops. They sell on their own account. They are mostly found in the royal area or suburbs such as retailers operates with limited capital and sell a limited stuff of single or variety of goods.
- TRIED SHOPS : This is a form of exclusive dealing or restrictive trade practice where by the supplier enter into contact with his distributor or to deal only with his products and not deals of the competition.
- INDEPENDENT RETAILER : This is someone who is completely responsible for his/her own business. They operate with small amount of capital and often a high degree personal service.
- ROADS DETRADER : This are small scale traders who operates along the streets and towns and city.
SMALL SCALE RETAIL UNIT
Automatic Vending Machine(AVM)
AVM is a type of machine where customers centers the money to press a button and the desire good cames out drink such as cold dirnks,sweets etc. They are often use in cinema halls parties and super markets automaticall. They are also carried out through quick services the help to reduce little left on the business(put ferage)
