(a) Discuss any five factors to be considered by Mr. Touray in locating his shop.
(b) Explain five ways a wholesaler can aid Mr. Touray’s business.
Explanation
a. Factors to be considered by Mr. Touray in locating his shop
(i) Availability of capital: He must consider the amount of money at his disposal for payment of rent, fixtures and stocking of the products.
(ii) Nearness to customers: He must locate his shop where there is demand for his goods.
(iii) Sources of supply of products – The location his shop should be very close to where he can obtain goods with ease.
(iv) Nature of goods: The nature of goods is equally important whether it will be for example, Children’s items or foodstuff.
(v) Level of competition: He should consider the number of other traders in the same line of business in the location.
(vi) Accessibility: He should consider the availability of accessible roads to his business premises.
(vii)Government policy: He should consider government policy if any, with regards to location of such business.
(viii) Availability of infrastructure: He should consider the availability of infrastructure such as water and electricity to support the business.
b. Ways a wholesaler can aid Mr. Touray business
(i) All information and advice about the goods and services are gathered from the producers by the wholesalers and then forwarded to Mr. Touray.
(ii) The wholesaler could create awareness of the goods by advertising them and engaging in sales promotion on behalf of Mr. Touray.
(iii) The wholesaler could help Mr. Touray by stocking varieties of goods produced or bought from different manufactures.
(iv) The wholesaler will buy in large quantity and sell in small units to Mr. Touray.
(v) The wholesaler could grant credit facilities to Mr. Touray in order to enable him stock assorted goods at a time.
(vi) The sorting, grading and packaging of goods could be done by the wholesaler to facilitate Mr. Touray’s purchases.
(vii) The wholesaler could convey goods to Mr. Touray’s shop at no extra cost.
(viii) By storing the goods in the warehouses for some time, this helps to stabilize prices to the advantage of Mr. Touray.
(ix) The wholesaler could sell at a discount to encourage him to buy more and make profit.