middleman Definition | Business Dictionaries from AllBusiness.com
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Business Glossary


Business Definition for: middleman

intermediary within a channel of distribution used to transfer products from the manufacturer to the end user. Those who actually take title to the products and resell them are merchant middlemen. Those who act as brokers but do not take title are agent middlemen. Merchant middlemen include wholesalers and retailers. Agent middlemen include manufacturer's representatives , brokers, and sales agents. Middlemen expand the capacity of the manufacturer to distribute products to the end user, transfer title between channel levels, collect payments from middlemen and end users, and communicate product information to all channel participants. When the financial and expert resources are available inhouse, manufacturers can increase their profit margins by reducing the involvement of middlemen.

See also forward integration
Copyright c 2000, 1994, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.


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