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The Main Role of Distributors

Companies usually classified according to the role they play in the business world. Manufacturers are businesses that make the products. Distributor transport goods from the manufacturer (or another supplier in general) to the next link in the chain, which is usually a retailer or reseller, depending on the industry.

The role that each one performs is very different, so it is better for companies to focus on what they do best. But there is sometimes a very fine line that separates the role of business so that manufacturers can perform some of the functions of the distributor, or the distributor can perform several functions from resellers or manufacturers can perform several functions resellers. You can check to get more information about the wholesale distributors.

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In order to make a profit, distributors normally buy from producers at low prices and then sell the parts of goods to a buyer at a higher price. The difference between how much the distributor to pay for goods and how much to charge distributors for goods that are often referred to as markup. As a result, when distributors working, it usually results in the end add to the price consumers pay.

markup varies depending on the industry, product demand, competition, and the amount of goods. A distributor may offer different prices for different customers.

Eunice Bryan

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