The paper discusses the important role middlemen plays in business world. It showed how both
the end users and the producers benefit from the services of middlemen.
Middlemen, who are also called intermediaries, are groups that exist between the producer and
consumer in the distribution channel. The more middlemen are there, the higher the distribution
channel is. They ensure that the distribution channel between the producer and end-consumer is
complete. Wholesalers, retailers, brokers and agents are typical examples of middlemen. Wholesalers
and agents are closer to the producer while retailers and agents are closer to the consumers.
Wholesales purchase goods in bulk from the producers and then sell them to retailers in large
quantities. Retailers then re-sell them to the end-consumers in small quantities.
Middlemen are classified as merchant middlemen or agent middlemen. Merchant middlemen
take legal ownership to goods purchased for resale. Wholesalers and retailers are merchant middlemen.
Agent middlemen do not take the title of the goods they sell. Real estate brokers and selling agents are
examples of agent middlemen.
Middlemen play several important roles. They can provide information to the producer
regarding changes in customer preference, demography and entry of a new product in the market. They
can also help the producers promote the product. Wholesalers and retailers also help meet urgent
customer demands since they do possess the goods. Middlemen also allow the producers to be efficient
and concentrate on their main function which is to produce and leave the selling function to the
middlemen. But the greatest function of middlemen is to match or connect the producers and the
consumers.