Top 10 Arguments against Middlemen | Should Middlemen be Eliminated?

Should the service of Middlemen be Eliminated?

Middlemen play an important role in every aspects of marketing as they act as a bridge between the producers and consumers. However there are still some areas where the service of middlemen need a second thought.

Should middlemen be eliminated - Arguments against middlemen

Should middlemen be eliminated? – Arguments against middlemen

Whether the service of middlemen is necessary or should the service of middlemen be eliminated completely in channels of distribution? Lets see the top 10 arguments against or disadvantages of middlemen.

Top 10 Arguments against Middlemen

1. Cost of Distribution

Middlemen hike the cost of the product, which is reflected in the selling price. The cost of distribution increases in view of the presence of middlemen in the market. The entire burden finally falls on the consumer.

2. Practice of black marketing

Middlemen resort to black-marketing and hoarding and thereby create an artificial demand for the product. This leads to price rise. Here again it is only the consumer who suffers.

3. Fail to pass on benefits to customers

Sometimes, the middlemen do not pass on certain benefits to the consumers, like samples, price cut, etc., offered by the manufacturers.

4. Duplicate products

Duplicate products are mixed with genuine products and sold by some unscrupulous retailers.

5. Selling expired goods

Goods, the expiry date of which has lapsed, are also thrust on the buyers by some retailers. They capitalize on the ignorance of the buyers.

6. Selling at higher than M.R.P

Some retailers even sell at a price higher than the maximum retail price (M.R.P). They manipulate “local taxes extra” to their advantage.

7. Fail to replenish exhausted stock

Sometimes, the middlemen fail to replenish the exhausted stock in time. As a result, the consumer has to wait for a longer time to get what he wants.

8. Poor after sale service

In the case of durable, the attitude of some dealers, particularly when ‘after sale service’ is required, irritates the buyers. Some of the dealers do not extend the courtesy extended earlier at the time of sale.

9. Prominence to a particular make

Some retailers even have secret pact with certain manufacturers by which they recommend only the products of such manufacturers to their consumers. In other words, prominence is given to the products of only certain manufacturers.

10. No faithfulness

As a connecting link between the producer and the consumer, the middleman is supposed to be faithful to both. He has to convey the suggestions and complaints of the consumers to the producers and also pass on any useful information, conveyed by the producers, to the consumers. Not many middlemen faithfully carry out such duties.

Leave a Reply

Recent Posts


Related pages

disadvantages of secondary market researchadvantages and disadvantages of advertisementstructure european unionfunds flow analysisalphabetic filingexceptions to the doctrine of privity of contractmeaning of venture capital funddifference between a void and voidable contractcapitalistic countrydefinition of fund flowmbo methoddefine rbisebi acthow to calculate the acid test ratiowhat is figurehead roleimportance of sales forecasting pdfdemerit definetypes of consumer cooperativedefinition of inventory turnover ratiorbi nationalizationexchange rate quotationjudgmental samplingadvantages and disadvantages of international monetary systemrandom sampling pros and consadvantage of budgetary controlduties and responsibilities of a purchasing officerco-principal debtordefinition of salesmandefine breach of warrantyformat of precis writingprobabilistic sampling techniquesworld bank organisational structurecastes system in indiaoverhead definition economicsprecis definewhat is hundi paymentstraight numeric filing system for medical recordssignificance of imfsecuritization typesfob origin pricing exampledisadvantages of tariffsnon probability methods of samplingwhat are the advantages of centralisationpresent worth calculationsales promotion premiums examplesseniority meaningwhat is gatt and wtocooperative retail storesoffice stationeriesexamples of mixed economiesdisadvantage of joint stock companycapex budgetingdirect material in cost accountingchit fund processadvantages and disadvantages of budgetinglimitation of managerial economicsadvantages of bill of ladingcreditors voluntary liquidation procedureadvantages of promotional pricingdebt securitization processmeaning of retailsdisadvantages of economies of scalesampling in biostatisticswhat is dematerializationdisadvantages of retained profitadvantage and disadvantage of bureaucracynegative impacts of industrializationwhat does indiscipline meancalculate direct materialspreference shares advantages and disadvantagesnon probability sampling techniques with examplesmonetary policy by rbiconsignment basis