What functions are carried out by the Retailer ?

A retailer is a person who is final piece of the chain performs certain functions which are described as under:

A retailer is involved with the process of buying and selling of the products from the both of the parties the wholesaler and the ultimate customer, a retailer purchase the products from wholesaler in a handsome quantity and sales those products in small quantity to the final customers.

A retailer keeps the products in the shop as it provides function of storing as well, retailer stores the products of different companies at single place for the very short period of time and in very little quantity as well.

Grading and packing function is also carried out by the retailer in which retailer gives the different categories to products and pack them, different quality and different sizes of the goods are packed by the retailer for a consumer.

A retailer is also act as an advisory for the customer, the customers ask for the advice from a retailer as a retailer is involved with the multiple brands customers sometimes feels confusion which to purchase and which to not that’s why they ask from the retailer and retailer what he thinks is good shares his views with the customer.

Provisions of Information: a retailer keep the information for the customer and shares it with the personalities for whom it is important to know what the customers are looking for like Producer it is very essential for the producer to know the likes and dislikes of the customers.

Retailer keeps the information like about the demand of the customer, fashion which is carried out by the public, culture and trend as well which is followed by the ultimate customers.

The retailer is also provides the facility to final customer of the home delivery, the products are provided to them at home with some extra charges retailer provides goods at home, in some business the home delivery is specialty like E-Commerce in which the goods are delivered at the door steps.

After sale service is also provided by the retailer, once a product is purchased by the customer now after the purchase of the goods the retailer also provided services such as maintains of the appliances, producer sometimes allows the customer to maintain their goods after six months free of cost from the retailer for what a retailer is paid by the producers.

Characteristics of a Retailer as a channel of Distribution

The word Retailer is derived from the French language whose meaning in to cut again the main motto or purpose for a retailer is to create the demand of a product among the consumers the majority of business in this universe is of retailing in which the directly selling of product goods and services to the final customer who purchase that product for personal use is involved.

A retailer posses so many attributes for what it is vital in the market for the customers and for producer as well , the traits of the retailer are can be:

A retailer who is a part of the channel of distribution in the chain it creates link among the wholesaler to the final or ultimate consumer.

A retailer is a person who has the personal contact or face to face sale with the customers for the producer it is very important to know what the general public is looking for, in which they are interested, this complete information is provided through a chain by the retailer.

As the business who totally rely on the satisfaction of the customers with the product but what really can satisfy the customer can know only either the customer or the retailer, a retailer has a knowledge regarding ends and want of the final customer.

A retailer do not have any single brand product it sales the goods in different varieties of goods there can be more then hundred company’s product in which a retailer is dealing with each product with different attribute and different utilities.

A retailer to attract its customers showcase the product or display its products on the window like you have seen the dummy wearing the cloths of different company in the markets through which you are attracted to purchase that particular shirts.

A retailer also deals on the credit as well some customers who are loyal but do not have money at the time of purchase of goods a retailer allows him to buy products on account after a time the payment is made by the customer, a retailer is known as the selling point as well from where you purchase the goods.

A retailer is a person who provides you goods at the convenient place sometimes door to door, the goods and services are available at easy point may be near to your home, in a area there are markets in each colony which are near to the population a retailer keeps its selling point in the market which is near and easily available to the public.

Who is Wholesaler and how it Provides Service to Producer

Wholesaler is a person who make the sale of product in a bunch it sales the product only to the retailer who with its margin sell those product to the final customers.

Wholesaler sales products in huge quantity he resale the products, it is very important in the channels of the distribution who buys and resell the merchandise to retailers and other merchants and institutions but he do not sell the products to the ultimate customer.

There are multiple services to a wholesaler provides to the producer which are described under:

Act as an Intermediary:

Wholesaler is an intermediate, he is an agent who creates links between the retailer and producer, it is a channel through which the producer make retailer makes contact and exchange of information regarding the need of the customers takes place.

Storage and Transportation:

Wholesaler is a person who keeps the product in the warehouses to provide the goods to remote areas where the direct selling of the product is not possible, it is only wholesaler through which the products are transported from the company to the wholesaler and wholesaler keeps goods in warehouses and from warehouses these goods are transported to remote areas.
Price Stability: Wholesaler plays a vital role in the stability of the price who maintains the mechanism of demand and supply, he fulfill the market needs with quick orders to the producer and do not let the market to be short in the products.

Risk Sharing:

A wholesaler is playing a vital role in the sharing of risk as it accepts the goods in huge quantity to fulfill the need of the market and store those goods into the warehouses now once the goods are stored the wholesaler bears the risk of possibilities of change in inflation, suppose a product of a producer is of $10 but after few days due to change in the policy of the government sometimes the governments provide subsidies to general public and reduce the taxes like General Sales Tax now the product which is of $10 now its price is $8 or may be less so the risk of $2 is shared by the wholesaler but it is also a fact that wholesaler also enjoys the benefit of inflation as well.

Prompt Delivery of Products:

A wholesaler is a person who creates link between the producer to final consumer there is a chain followed by the different personalities wholesaler keep the goods in the near places from the market, if any shortage of the products occurs the demand can be filled on immediate actions, it will take time to reach goods directly from the company this is how a wholesaler helps in the prompt or quickly delivery of the products.

Functions of Channels of Distributions

Channels of distribution also known as marketing channels it is path or way which is traced in the direct or indirect transfer of the ownership of the product, it moves from the producer who produces the product for earning the profit and to the consumer who purchases the product to satisfy its needs for whom the product is composed of the utilities.

There are different functions of the channels of distribution that are followed to facilitate and provide products at door steps, the functions are described here below:

Assembling of the Goods:

The product is composed of so many parts which are produced or manufactured at different places the product is made up of those different parts now these products are assembled or gathered at one place and form those different parts one or single product is produced.

Physical Distribution

Goods are physically distributed place to place it is transported via automobiles to stores like warehouses where these are kept for further far placement of the products, on these warehouses there are certain standard which are necessary to be meet like temperature so it should not become harmful to product.

Marketing Information/ Research (Strength and Weakness):
One of the most important factor for the channels of the distribution is to research the market gather the information regarding the product, place, selling techniques, advertisement methods what fashion is adopted and what are the methods to attract the customers.

There are certain elements for what the company enjoys the more edge like any company is rich with the technological and innovative factors or any company has any edge for its flavors.


The work of finance can’t be ignored in this phase money is sometimes paid in advance as a loan they companies are financed by the different agencies to carry out its functions and for that favor the company is charged with the interest.

Grading and Mechanism of Demand and Supply

Grading meaning the categorizing of the product in which product is categorized like A B C and so on, in the market the equal balance of supply and demand must be maintained otherwise it can create inflation in the market as where at the market the demand for a product is high the supply should be according to the demand if there is a shortage in the supply the price for that product will go up as there will be huge number of buyer and less number of sellers.

What is Theory of Firm

A firm is to be considered as an effective tool for the production and distribution of goods and services, in the very common and least level the theory of the firm show case the responsibilities and relationship of any company towards the factors which are either the directly or indirectly involved.

In the theory of the business the goal and object of the business is defined in which the firm is predicted with the nature of the firm’s existence, behavioral structure and its relationship with market, theory of firm mainly rely on the two things that how to face future uncertainty and tries to hypotheses the future expected value of the firm.

The factors which are directly and indirectly involved with the company are discussed below:


The Customer puts a major impact on the company as Firm is Directly involved with the customers as it is the customer for whom the company produces the products and it is customer who purchase the product of the company and with the satisfaction with the company’s product customer by purchasing more and more products of the company it increase the sale of the company and ultimately it increase the profit of the company.


Supplier is factor through which company receives the raw materials and produces the products for the general public to satisfy the ends and want of the customers, supplier is a factor which makes enable to any company to utilize the resources such as machinery, land, working force and anything by providing raw material the supplier has a great impact on the company specially in the price matter as if there is less bargain from the supplier the cheaper the price will be of product.


In the management there is a position named as manager, the person who hold this position is responsible for the managing organization committed employees, those persons who are committed with the company the manager is a leader who leads them by just indicating the way towards success but he also do not let down those persons who by morally are down he encourage themselves and try to bring them in the main stream.


Another factor which has great impact on the company is the society from where the company avails the potential and competitive work force and the responsibility of company toward the society is to provide them a qualitative and reasonable priced products.

What are the Objects for Pricing Decision

The price is decided for a particular unit or product of any company by the authorities with the involvement all the factors of market, keeping in the view of the quality of the product and other factors like supplier as well, the decision is made for pricing a product is obliviously is to make the more profit but there are some other reasons as well for which the price is maintained.

Prince Stability in Different season and Different Place:

Price must be stable of any product it should not vary time to time, season to season, place to place which can be known as unique price these things are specially maintained by the brands but yes the fluctuation of price is truth the fluctuations takes price in the commercial areas, weather and so on.

Achieving a Target Return:

To achieve the target or rate of return in investment the money is fixed with a particular agency or financial institutions who offer very good rate of return on the saving of an amount of money.

Computing the Market:

In the market there are different types of prices are fixed as it is famous saying for the market that it is like a boxing ring in which price captures the market by fixing a fair price, prices are fixed accordingly like low, high, introductory and sometimes competitive when it is required.

Buying Pattern of the Customers:

In this phase the particular customer age is kept in mind that who is your customer, Age difference of the consumers either you are launching for the kids, youth, or old aged persons who is going to purchase the product of the company.

Long Run Welfare of Firm:

Fixing a reasonable price so your product and firm can run for a long time no seasonal charges no placement charges will keep the belief of customers on company’s product in this way it is very easy to survive in the market less fluctuation will allow you to remain in the main stream of the market for a longer period of time.

Social and Ethical Contribution:

Though fixing a price a fair price is how you are serving the society should be a price to which the society who is your customer must accept and encourage you remain in the market through the purchase of products of the company.

Resource Mobilization:

Resources are to be mobilized as it can increase or we must plough back some money from profit so it can grow our business.

Accounting for Reserves and General Reserves Vs Specific Reserves

Reserves are the savings of the company that an entity use to keep in order to meet the future contingencies, even each individual either it is company man or households keep their savings for the rainy days, now the same procedure is adopted professionally in which companies use to keep their funds to fulfill the needs for future.

Reserves are maintained to meet the future loss which is not known it is unexpected, for the security to avoid any collapse in business these funds are necessary to maintained, there are different types of reserves such as reserves for accrued expenses like outstanding salaries and wages, to represent a portion of profit set aside out of available net profit for the unexpected and unknown future liabilities.

Specific reserves are kept as a provision form the profit and loss account in order to meet the anticipated expenses and contingent losses, outstanding wages, where as the general reserves are kept for the enhancement of the business, to increase the capital and make more strength able to a business.

When the Specific reserves are kept by the companies, in accounting the entries for the specific reserves are kept in the debit side of the profit and loss account before the determining of the net profit, where as when the general reserves are kept by the companies from its profit the accounting entry for that reason is to debit profit and loss appropriate account or statement of retained earnings after the net profit.

In the specific reserves the provisions are either obligatory or compulsory, the accounting entries are even in the debit side if it is a loss for the company, on the other hand creation of the general reserve is not obligatory or compulsory it is only created when the company is having a handsome profit it is not necessary for the company to create general reserve but only in profit the creation of general reserves are necessary to meet the future uncertainty.

General Reserves are the symbol of the healthy business which shows that company is having a such potential so that it can run in smooth way it represent in surplus of assets over capital and liabilities but in the specific reserves it does not represent any healthiness for the company or it does not show any surplus of asset it is just necessary for any entity.

The specific reserves are shown as the deduction from the asset in the balance sheet and the general reserves are shown on the liability side of the balance sheet.

Procedure Followed by the New Entrepreneurs

Everyone can start a business, there is no limit of age and without education, experience, a person can start a business.
When a person wants to do business, it is not necessary that have lot of money and degree, only investing small amount is sufficient to start but this amount should be used wisely.

Different steps to start your business, these important steps will help in every new business to start

Appraise yourself

Ask some questions from yourself like what kind of business you want to start, how you will manage this all, how you will manage the loss in business and how you will invest or save the profit, after knowing the answers of all these questions you are somehow able for startup.

2-Taking ideas
Collect the new and latest ideas about business which are going on now a day or we can say assemble the modern ideas from others.
Best ideas can be taken from experienced one because they suffer from losses in their business.

After collecting all the ideas, now chose the best one or that, which you feel easy to run

3-Make a plane

Making of some strategies in any business is the key for success in business, so writing plane is necessary.

Write a plane on paper what you are going to do, from start to end, like how much you invest, what are the strategies and policies of market now a day, and write about the competitors in market for product, it is just like summary of over all work.

4- Investing in business

For investing in business, you can take loan from banks because it is the start of business and it happens with every fresher, or you can ask to family or friends to help you, after profiting you will easily invest in next one and then no hurdle you feel.

After taking ideas, making planes, this is the most important step for establishment of a new activity or a business.


Advertisement is also mandatory for your business because the product you launch in the market is new and no one knows it until or unless you provide the knowledge about it, now it’s up to you that what kind of way you take to advertise your product either you invest to media for your endorsement or you will pay to artiest for banners.

Concept of Depreciation and its Provisions

The word depreciation is related to the subject of accounting in which depreciation is a process of gradual and permanent reduction in the values of those asset is decreased after the maturity of time the asset time duration the asset is now in no more use because it does not possess that utility for which organization has bought that asset.

The asset which are bought and depreciated after its use can be the automobiles like car, van, bus etc and it can be the machinery plant and so on.

Assets by nature and by use cannot last forever it has its life and after some decades or may be within decade the asset becomes expire due to its wear and tear situation thus the reduction which takes place due to many reasons is a business loss like other operating expenses of the business.

For such type of loss the companies always keep their provisions in order to meet and overcome that loss so that the process of carrying business on the peak must be keep on going, there should be any hindrances for business which cannot let the business to run smoothly.

There are so many types of provision that company keeps such as Provision of Debt, Provision for Doubtful Debts, Provisions for any contingencies and Provision for Depreciation as well though there can be more provisions than the described but because we are only focused with the provision for depreciation so here we are going to discuss that provision only.

First of all lets do understand why the depreciation occurs what are the reasons behind the depreciation, the depreciation or the reduction takes place in the values of fixed assets on account of the following reasons:

Wear and Tear of the Asset: Companies do have the fixed assets like building machinery automobiles and other assets due to its use the assets loss its potentials they do not possess such energy that it has previously it decreases day by day.

Passage of Time and Exhaustion: Each asset no matter what type of it is, everything has its time for its finish once it has completed its maturity time it becomes now no more in use, assets are consumed as well which sometimes applies in the mines and quarries, the values of which go on diminishing.

In nutshell provision is simply mean that it is funds which is maintained by the companies to meet its future need for the profit which is earned by the company.

What Process is Followed to Do Market Research ?

Research is a way, it is process in which the individuals are involved to extract the information which is needed according to the requirement of a person, the reason of the research is to acquire solutions to the problems.

When you need to investigate something you do research of that particular element by following a systematic way with the material and sources available at the spot and with those materials and sources people come into some new facts and effective conclusion.

Identification of the Problem

The process of research starts with the identification of the problem, people have to come across with a problem for which they are going to do a research, they need to find a topic or statement rely on that topic they go through the ground and do investigation regarding that problem aim is to obtain new facts and have an effective conclusion.

Situation Analysis

The next step is to analysis the situation regarding that particular problem that why that problem occurs, in situation analysis the experts use to collect the methods in which they analyze organization’s internal and external environment in which they decide about the capabilities, customers and business environment.

Research Design

In the process of research design the time-frame and cost of the research is going to be discussed that for how long it will take to complete the research, the cost which is going to be budgeted separately for the research how much funds should be allocated to researcher and the type of the research is discussed either it should be descriptive research, experiential, or correlation research (these are the different types of the research there are some other types as well but just to quote an example we have taken few types).

Collection of Data

In this step a research collects the data with two types the primary research and the secondary research (Primary Research includes the personal findings, own work when you do research personally going to the locations and asking for the facts is known as primary research whereas on the other hand secondary data is a kind of research in which people rely on the research work of others which is already been done by other researchers they do collect that information from the reviewing of literature, they use search engines on the internet, newspapers, both types of media etc is used in secondary type of research).