Why would a producer use wholesalers rather than selling directly to retailers or consumers?

What will be an ideal response?

Wholesalers add value by performing one or more of the following channel functions: storing goods, transporting goods, financing, risk bearing, facilitating information flows, and providing technical support and order processing. Wholesalers can perform many channel functions more efficiently and effectively than a producer can, allowing the producer to focus its energies on creating its product. Wholesalers expand the market coverage area of a manufacturer.

Business

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