Place

• Wholesaler Benefits

  • Distribution and storage costs are reduced as products might be bought in bulk
  • The risk of not selling the products to a retailer or the customer is taken on by the wholesaler and therefore the risk for the manufacturer is reduced
  • The manufacturer does not have to worry about selling excess inventory.
• Wholesaler costs

  • The manufacturer loses control over what happens to the product after they haves sold it and may not like the way the product is being portrayed by wholesalers or retailers.
  • There is less profit for the manufacturer as they have not sold directly to the customer
  • Loyalty and any associated benefits of this cannot be gained
• Costs of Internet selling

  • Customers may not want to provide their bank details
  • Internet or computer problems might occur
  • Items can get lost or damaged during transportation
  • Customers are unable to physically see how the product feels to looks like before purchasing
• Benefits of Retailer

  • Decides on the price of the product
  • Stocks a range of products
  • Can take advantage of the bulk buying
• Costs of Retailers

  • Product might face competition from other manufacturers
  • Extra financial costs associated with using a retailer