Question

Discuss five reasons why a manufacturer may decide to sell directly to consumers

Answer 1

1. Concentration of customers in one place- this makes the manufacturer to reach them easily
2. Customers being near the market- where customers are near the market, manufacturers may decide to sell directly without other middle men
3. Requirement by the government – some legal constraints may force the manufacturer to sell his or her goods directly to consumers
4. In case of ordered goods – where goods produced have been ordered by customers, the manufacturers will sell them directly
5. Where production follows customers specification
6. Where products are fragile – this will need a lot of careful handling hence will be sold directly