In global markets, connections are very important so that products can be processed and delivered in optimal time frames and that they cover a quota of production and sales that allow to obtain profits, in the middle point between manufacturer and consumer is located this figure that has a great impact on trade, these are the intermediaries.
The role of these people in a general and basic way to ensure that the producers of goods and services can do get your products more easily final consumers, while the intermediary, depending on the modality, gets a profit margin for each operation in which it has intervened as an intermediary.
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In this article you will find:
What are Intermediaries?
An intermediary or intermediaries, is the person, entity or company that serves as a nexus to commercialize the availability of products, goods and services of some products and the person who demands it, managing to expand the market so that those who wish to acquire these products, come and or services can acquire what they most want. convenient.
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On the other hand, for the producers or generators of services, save on the sales expenses that they should incur in order to place their products on the market to be consumed.
Although previously this figure was seen as a parasite, today thanks to globalization it is easier to distribute these goods and services, so that small businesses can show and offer their work to third parties that they normally could not reach without high spending on advertising and strength of sales.
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Roles of intermediaries
Intermediaries are figures that allow optimizing many of the processes, although their participation has a negative side for the final consumer since there is an increase in the cost of the good and / or service so that the participation of the intermediary is covered the number of functions they fulfill allow that on a large scale the market be benefited.
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The main functions of intermediaries They are:
- They are in charge of looking for the largest number of producers to meet the demand of a certain sector.
- They locate buyers who will acquire the goods and services offered by the suppliers, these can be a final consumer or other broader-scale intermediaries.
- It allows the number of transactions to be reduced and allows a natural and more balanced cohesion in the market of demand and supply.
- Sometimes they are in charge of the logistics and transport of the products.
- It exercises a marketing and sales campaign that allows the products and services offered by suppliers are known and more attractive, which will generate an increase in your sales by being able to reach a larger audience.
- When they acquire the rights and obligations of the good that they will commercialize, they assume the risk of deterioration and obsolescence of the product.
- It allows a growth of the financial instruments of the market, since they usually generate sales on credit.
These functions are in a general way and broadly speaking, the function of the intermediary depends on the type of transaction, the rights and risks that it is capable of assuming according to the agreements they have with the supplier and with the client.
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Types of Intermediaries
As we have mentioned previously there are several types of intermediaries, depending mainly on the number of activities for which it has rights and responsibilities, which is generally agreed upon through contracts with suppliers.
Among the main types of intermediaries we have:
Financial intermediaries
The Financial intermediaries are perhaps the best known and related to the name, they are in charge of contacting those people who has a surplus of money and who seek to place this money in the financial market to earn interests.
These intermediaries manage to place the money in those financial instruments in the stock market and diversify the portfolio of the person, so that the people who They seek to develop a project obtain financing from third parties that they will never know thanks to the participation of the intermediary who earns a commission for carrying out this transaction.
In this way, the capital will generate a return that will allow both parties to benefit without many complications. since it has been the intermediary who has facilitated the connections that otherwise would have been a long and cumbersome.
Commercial intermediary
On the other hand we have commercial intermediary in its most classic cut, since, like the financier, it puts in contact the different providers that have an offer and the different clients that have a demand, these operations are increasingly common, from the field of export or import and in the distribution of products and / or services in a way local.
A quite practical example can be seen in supermarkets, they are responsible for acquiring a large number of products from different suppliers at a price wholesaler, so its cost is lower, makes it available to its customers with a higher price that allows them to obtain a profit margin that is profitable. This modality assumes all prices and benefits.
On the other hand, there are methodologies where the intermediary only earns a commission for the purchase of the items through their sales efforts, but at no time do they buy the product, their participation is limited to the placement of the product, as if a marketing service were will try.
Legal intermediaries
The legal intermediaries can be seen more clearly in well-known law firms, since the premise of their work is the conciliation between two parties to reach an agreement, based on the established contracts and in contrast to what is established and regulated by the law.
These will be in charge of reaching an agreement through negotiation between the parties, and ultimately before a jury, usually the income they will receive. Legal intermediaries will be based on a fixed fee income already established or will receive a variable profit, depending on the remuneration agreements agreed between the parts.
Regardless of the type of intermediary, the basic function continues to be to simplify transactions between two parties in exchange for an economic benefit for this service.
