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Wholesaler

The middle man between manufacturer and retailer. He is able to buy in large quantities and then break these into smaller parcels for the benefit of the retailers. The wholesaler takes a profit either by adding to the manufacturer’s price or by charging a commission to the retailer. Where selling prices are fixed by the manufacturer, the manufacturer in by the manufacturer, the manufacturer in effect gives a share of his profit by way of discount to the wholesaler, who passes on a share to the retailer. This is often referred to as a trade discount. The wholesaler’s necessary for the manufacturer himself to necessary for the manufacturer himself to set up depots in various parts of the country to facilitate distribution and keep careful track of local demand.

Reference: The Penguin Business Dictionary, 3rd edt.