Businesses are the backbone of nay economy all over the world. The biggest economies in the world like United States and China as examples all depend on businesses that produce their own goods. Businesses involved include; the producers themselves, the wholesalers and the retailers. They all form a chain of distribution where the products will pass before reaching the final user. The longer the chain of distribution, the higher the costs and expenses involved hence increasing the cost incurred by the customer to purchase the item or received goods from RRP supplies.
Usually the RRP supplies chain of distribution continuously increases prices until the end of it where the final consumer or user of the product is the one to bear all the burden of the costs. These costs arise due to bulk breaking expenses, transport cost and even taxation of which the customer bears.
Why have these distributors? The suggested price is very useful in the market. This is so to stabilize the prices in the market. This eliminates the disadvantages that exist in a free market economy where every seller fix their own prices or apply the forces of demand and supply. In a free economy then there would be inefficiencies that would be evident if there is no stabilization of prices.
Protection of consumers is another thing which is put into consideration. If the retailers were left to manipulate prices as they want there would be other inefficiencies. Some retailers would start practicing hoarding, such that they wait for appropriate time when the prices are high to make more profits leading to shortages. They could also increase prices directly and exploit the consumers.
They are actually known for the better and community development. It does not really fix the retailer to the price as they can choose to do with a lower price. This is so because they want to attract more customers. Because of the stiff competition in the market this is one way of luring customers. However if it is not done right it may lead to losses.
Therefore retailers ensure that the customer gets the products on time. The retailers should create utility for the goods passed to them in the chain of distribution. It could be time utility, form, place and time utilities to ensure satisfaction. Form utility would be created by repackaging after breaking bulk so as to meet the taste and preferences of the consumers.
Above all retailers are far advantageous. This is because they are the ones that deliver the goods to the final consumer. They create all types of utility. Therefore a lot of time is saved that would be used to obtain goods from the producer.
They could also extend credit facilities and after sale services. The latter is as cost saving as they may give free delivery or free installation of some equipment. Therefore retailers do not only issue supplies at a suggested price but have more other advantages in the economy that people need to know. RRP supplies retailers are therefore basic in any business oriented society hence they should be appreciated for the various roles they take.
Usually the RRP supplies chain of distribution continuously increases prices until the end of it where the final consumer or user of the product is the one to bear all the burden of the costs. These costs arise due to bulk breaking expenses, transport cost and even taxation of which the customer bears.
Why have these distributors? The suggested price is very useful in the market. This is so to stabilize the prices in the market. This eliminates the disadvantages that exist in a free market economy where every seller fix their own prices or apply the forces of demand and supply. In a free economy then there would be inefficiencies that would be evident if there is no stabilization of prices.
Protection of consumers is another thing which is put into consideration. If the retailers were left to manipulate prices as they want there would be other inefficiencies. Some retailers would start practicing hoarding, such that they wait for appropriate time when the prices are high to make more profits leading to shortages. They could also increase prices directly and exploit the consumers.
They are actually known for the better and community development. It does not really fix the retailer to the price as they can choose to do with a lower price. This is so because they want to attract more customers. Because of the stiff competition in the market this is one way of luring customers. However if it is not done right it may lead to losses.
Therefore retailers ensure that the customer gets the products on time. The retailers should create utility for the goods passed to them in the chain of distribution. It could be time utility, form, place and time utilities to ensure satisfaction. Form utility would be created by repackaging after breaking bulk so as to meet the taste and preferences of the consumers.
Above all retailers are far advantageous. This is because they are the ones that deliver the goods to the final consumer. They create all types of utility. Therefore a lot of time is saved that would be used to obtain goods from the producer.
They could also extend credit facilities and after sale services. The latter is as cost saving as they may give free delivery or free installation of some equipment. Therefore retailers do not only issue supplies at a suggested price but have more other advantages in the economy that people need to know. RRP supplies retailers are therefore basic in any business oriented society hence they should be appreciated for the various roles they take.
This article collected, selected and written by: Author Van Hoc
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