An end consumer is the final recipient of a product or service. The distribution channel can be short or long, with intermediaries adding to the final price. Shorter channels can reduce costs for the end consumer.
An end consumer is the last point of the distribution channel, which is a term used to describe the various routes that a product or service will follow before reaching its end consumer. Sometimes the distribution channel to the end consumer is very short, while other times it can be a more complicated and jaded affair. The definition of final consumer includes both human beings and other non-living entities such as companies. An end consumer is differentiated from other types of intermediaries between the producer of the goods and that consumer by the fact that the consumer is buying the good for his own consumption.
A short distribution route from the manufacturer or producer of a product to the final consumer means that the process is very short and straightforward. An example of such a short path can be seen in the case of a person going to a restaurant to eat. If the person orders filet mignon, then the restaurant is the producer, while the individual is the final consumer. On the other hand, if a grocery store orders restaurant-ready filet mignon steaks to sell to its customers, then the grocery store is an intermediary between the producers and the final consumers.
Sometimes the deployment path is much longer than the two scenarios described above. For example, a farmer might sell truckloads of corn to a wholesaler who will sell the corn to a distributor. The distributor may supply the corn to other resellers, including resellers. All of these people are simply intermediaries between the farmer and the final consumers who will purchase the grain from grocery stores and other final outlets. Also, the longer the distribution channel, the more likely it is that the final price of the product will be higher due to intermediaries along the distribution channel adding their profits to the item as it is passed along the distribution path .
An example of this can be shown using the case of the farmer who is the producer of the corn. Assuming the farmer goes to a farmer’s market to sell his corn instead of selling it to a wholesaler, the farmer will greatly shorten the route of distribution to the final consumer. Such a move will also make the price of the corm much cheaper for the end consumer as the middle men have effectively been cut out of the picture.
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