![]() ![]() Let’s not expect middlemen to just fold their arms and not fight back when we effect changes but we must be firm in our resolve to see any meaningful change. We can no longer do business as usual and expect things to be different. We have people of diverse professions here. We have the number to start the change we hope to see. Our produce should be inspected and then the middlemen will buy at a price agreed by the association which should have a fair representation of both sides of the divide. ![]() We will need to belong to some associations where we will register for a token. We can actually have something like a task force so to speak. However, we will need to have structures in place to determine fair prices for produces, control the market and penalize offenders and to act as checks and balances to the excesses of the middlemen. This is possible when they try to handle too many deliveries or do long distance supply.We will not be able to completely eliminate the roles of middlemen. Insufficient information: Middlemen sometimes have no proper knowledge or half-knowledge about the goods and services or are not aware of the background of the manufacturers and companies which may be problematic or might create hurdles in the distribution channel.ĭelay in delivery: The use of middlemen is to get easy access to goods and services, but it is possible that middlemen can delay deliveries or cause product loss. Also, one of the drawbacks of middleman is in the agricultural market, where they manipulate the supply and profits between the farmers and the trader. They also manipulate and influence customers to make purchases. The percentage is usually less.īlack marketing: One of the major disadvantages of intermediaries and the arguments for elimination of middlemen is black marketing. A middleman purchases goods and services at wholesale rate and later he/she sells them at higher prices. Middlemen also hoard the products and later sell them at higher prices when, there are inadequate supply conditions in the market by taking the advantage of the situation. ![]() The service of middleman cost less as they mostly take commissions, i.e. Brokers or intermediaries give accurate market information to investors and propel them to invest.Ĭost and time effective channel: Through the work of middlemen and intermediaries, companies save time in working out the strategies to reach potential customers. ![]() They make it easy for both the parties to adhere to their needs.įunding services: They fund and raise funds on behalf of the companies. They finance by providing the advance payment for the purchase goods and services in bulk.ĭirect selling: Middlemen are the direct sellers of goods and services to retailers and customers and are the first point of contact. They give information about the customer needs, problems and interests, demands to the producer which helps the producer in planning and implementation. Similarly, they provide information about the availability of goods and services, new products, details of the market to the consumers.įinancing: One of the important roles which a middleman plays is of financing agent. Informer: Middlemen act as the informer to both the parties. They also develop their own sales strategies to build customer traffic. They pass the information and services from one place to another. Promotion of goods and services: Middlemen also act as promoters of goods and services for the producers. They collect goods from different locations and/or countries in bulk, and service them to consumers and retailers at their doorstep without any hurdles. The availability of goods and services is easier with the help of middlemen. Availability of goods and services: The middleman plays the role of providing goods and services from producers to customers. ![]()
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