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Wholesalers Helping Distributors Stay Afloat
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A major role of the wholesaler, which is to help distributors manage their working capital, has remained constant over the years. However, that role now is more important than it has been in recent history because of the recent economic downturn. Small and large distributors are looking to wholesalers to provide guidance in times of economic uncertainty. As fuel and energy costs rise and business loans are still hard to come by, wholesalers have the purchasing power to step in and negotiate product prices with manufacturers. This mitigates the need to pass down costs on to distributors, who already are looking to reduce operating costs and are being pressed by customers for low-priced products.
With customers looking to purchase low cost alternatives to what they've traditionally been purchasing, distributors are afforded the option of tapping into their wholesaler for 'B' and 'C' items without having to invest in truckloads of inventory with hopes that it well sell.
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