If you look around right now you will see that you are surrounded by machines and objects of human creation. From the insulation in our houses to the television, we are constantly enjoying the ease that these creations bring to us. It is so common that we do not even spare them a second glance, but in fact, they are complex. Both in their creation and working, so what exactly are these civilian products and how are they so common in our lives?
An insight into the objects we use in our daily lives
Unless we have a brand new commodity we fail to value items of our daily use. There is an enormous amount of time and effort that goes into everything we use, from our air conditioners to a part of one; like a refrigerant. This is why it is a wonder how everything is so readily available to us. The process goes something like this; companies working hours designing and making a new product. The public is informed and ‘hype’ aka demand is created. These companies, however, are less likely to widely distribute these products on their own and contact a third party. This middle man will be a wholesaler or a retailer who is in charge of providing the product directly to the consumer. They make it possible for the products to not only be available across one country but on a global scale.
Functions of retailers and wholesalers
Retailers are very important, for the companies and the consumers. What I mean by this is that retailers are crucial in the benefits of the companies that provide the goods and the consumers who then consume the goods. They can be thought of as a bridge between the companies and retailers. Let us look at the benefits now. In terms of the companies or the producers, the benefit comes in the form of sales. Think about it, the companies only manufacture the product, meaning that they have no way of selling them except for wholesale to other large firms. When they supply their product to retailers it will generate revenue for them. That revenue is the retailers of which a fraction goes to the producer. This is also the retailer’s benefit. That is in the form of revenue and profits. They get money from selling the goods and the producers get the benefits in terms of revenue generated for them. This revenue is usually in the millions if the company is large enough.
An example of retailers and producers working side by side is Crescent Corporation who works and provides the products of Honeywell in Pakistan. They can be thought of as Honeywell distributors in Pakistan. They are the leading distributors working in Pakistan who have sufficient experience in this area to know what is best for their customers and work hard for them.