Arguments for the Elimination of the Wholesalers:
1. Many manufacturers feel that they can promote their sales without the assistance of wholesalers by aggressive selling effort, advertising, branding and product differentiation, lower prices, etc. They also feel that they can do the wholesaling function more economically than they wholesalers.
2. Many wholesalers use their own brands in competition with the manufacturer’s brands. This affects the reputation and the business of the manufacturers adversely. So, they want to eliminate the wholesalers.
3. Some of the manufactures wish to deal directly with the retailers, as they feel that the retailers are the best means of promoting sales.
4. Manufacturers of goods which require sales and after-sales services, such as demonstration, installation, adjustments, fitting, repair service, etc. prefer to deal directly with the retailers to assure such services.
5. Perishable commodities like bakery products, dairy products and fashion goods must be sold as quickly as possible. That means, the channel of distribution of these goods must, not have wholesalers.
Arguments against the Elimination of the Wholesalers:
1. Many manufacturers do not have sufficient finance and will raised marketing department to assume to the functions of the wholesalers and to deal directly with the retailers.
2. Marketing functions are so complex that they require specialization and experts. But most of the manufacturers do not have them. So, they have to depend up to the specialist’s experts, viz., the wholesalers.
3. The wholesalers perform the functions of concentration, equalization and dispersion better than the manufacturers.
4. It is not economic for manufacturers to deal directly with the small orders of a large number of small retailers. That means, they have to depend up to the wholesalers.
5. These are the days of specilisation. In these days of specialization, the manufacturers must be specialized in production, and the retailers must specialize in retailing.
