Trading functions

The trading functions are understood to mean those tasks that the trade takes on in the distribution process for the manufacturers and users of products. A distinction must be made between the following functions:

Room bridging function
The trade bridges the physical distance between the manufacturers and users of the products.

Time bridging function
The trade bridges the time differences between the manufacture and use of the products by storing them until they are sold.

Quality function
The trade buys products from various manufacturers and puts them together for their customers in assortments tailored to their needs.

Quantity function
Retailers buy large quantities from manufacturers and sell them on to users in small quantities.

Advertising function
The trade carries out advertising and sales promotion for the products.

Credit function
Retailers give credit to their customers to make purchases easier.

In order to take over these functions, the dealers receive function discounts from the industry and a trade margin from their customers.

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