Discuss some of the functions that full-service wholesalers provide. How do these differ from those that limited-service wholesalers provide?

Question

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Answer 1

Full-service wholesalers perform the widest possible range of wholesaling functions. Customers rely on them for product availability, suitable product assortments, breaking large shipments into smaller ones, financial assistance, and technical advice and service. Full-service wholesalers handle either consumer or business products and provide numerous marketing services to their customers. Although full-service wholesalers often earn higher gross margins than other wholesalers, their operating expenses are also higher because they perform a wider range of functions.
Limited-service wholesalers provide fewer marketing services than do full-service wholesalers and specialize in just a few functions. Producers perform the remaining functions or pass them on to customers or other intermediaries. Limited-service wholesalers take title to merchandise, but often do not deliver the merchandise, grant credit, provide marketing information, store inventory, or plan ahead for customers' future needs. Because they offer restricted services, limited-service wholesalers charge lower rates and have smaller profit margins than do full-service wholesalers. Although limited-service wholesalers are less common than other types, they are important in the distribution of products like specialty foods, perishable items, construction materials, and coal. Limited-service wholesalers are categorized as cash-and-carry wholesalers, truck wholesalers, drop shippers, and mail-order wholesalers.