Question

Explain five circumstances under which a manufacturer would prefer to sell his products direct to consumers instead of selling through middlemen.

Answer 1

1. If the goods are highly perishable to prevent them from going bad.
2. To enable him to provide after sale services to buyers e.g. repair and maintenance.
3. To minimize the cost: Lowering the price of good/ increase sales/profits
4. If he has his own retail outlet: to maintain service standard.
5. In case it is the legal requirement; ne must comply.
6. If the market is concentrated in one area: all customers are within reach directly.
7. If the goods are to be produced are tailor made/ at the buyers specificationexample is the expansion.
8. If goods produced are in small quantities: hence making it expensive to use middlemen.
9. If the value of goods is too high; to avoid increase in price.

Answer 2

If the goods are in big numbers