14. the marketing mix: price at University of Birmingham

• may be more expensive for small shops to buy from wholesaler, than straight from the manufacturer 
• wholesaler may not have the full range of products to sell 
• takes longer for fresh produce to reach the shops, so they may not be as good as quality 
• wholesaler may be a long way from the small shops 
• the consumer price is often higher than direct selling as both the wholesaler and retailer have to cover costs and make a profit 

• the producer has less control over the way the product is sold to customers 

an agent is an independent person or business that is appointed to deal with the sales and distribution of a product or a range of products 

mail orders are when customers look through a catalogue or magazine and order through post orders, telephone or the internet 

internet / e-commerce are distribution methods, consumers view the goods on the business's website, they can order on the internet, telephone or mail 

• no direct control with customers 
• the price is often higher than direct selling as the retailer has to cover its cost and make a profit 

• wholesaler saves storage space for small retailer and reduces storage costs 
• small retailers can purchase fresh products in small quantities from the wholesaler because they have a relatively short shelf life before they deteriorate 
• wholesaler may give credit to retail customers so they can take the goods instantly and pay at a later date 
• wholesaler may deliver to small retailer thus saving transport costs 
• wholesaler can give advice to small retailer about what is selling well 

• channel one - directly to customers 
• channel two - using a retailer as the only intermediary 
• channel three - using a wholesaler and retailer as intermediaries 
• channel four - using an additional intermediary such as an agent 

• it involves manufacturers selling their products directly to customers 
• it is suitable for products which are sold straight from the business 
• there is a lower price if sold directly to customers 
• products can be sold by mail order catalogue or via the Internet 

• consumers probably don't live near the factory and can't go there to buy the products 
• this method may not be suitable for products which cant be easily sent by post 
• it can be very expensive to send products by post and therefore it may not be cost effective 

• producer sells large quantity to retailer 
• reduced distribution costs compared to selling directly to consumers