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 Form 3 Business Studies: Chain of distribution online lessons

Problems that producer may encounter if they sell directly to customers instead of through intermediaries.

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Answer Text:
Problems that producer may encounter if they sell directly to customers instead of through intermediaries.
(i) Increase in storage cost.
(ii) Increase in cost of promoting product
(iii) Cost of transport increase.
(iv) His attention will be divided.
(v) Higher risks like fire, loss.
(vi) Extra expenses incurred in preparing goods for sale.


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