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Wholesaling
Contents: Wholesaling Wholesaler Functions of Wholesalers Types of Wholesalers . What is wholesaling ????
•All Activities involve in selling goods and
services to those buying for resale or business use . Wholesaler:- •A firm engaged with primarily in wholesaling functions. Functions Of Wholesaling :- Financing :- •Finance their customers by giving credits •Finance their suppliers by ordering early and paying on time. Warehousing :- • Hold inventories, thereby reducing the inventory costs and risks of suppliers and customers. Transportation:- • Provide quicker delivery to buyers • Because they are closer than producers. Market Information:- • Give information to suppliers and customers about competitors, new products and price developments. Types of Wholesalers Merchant Wholesalers:- •Independently owned business that take title to the merchandise they handle. •In different trades they are called jobbers , distributors . •They include full-service wholesalers and limited-service wholesalers . 1. Full-Service Wholesalers :- •Provide a full line of services: •Carrying stock ,maintaining a sales force, offering credit . • Two types . a): Wholesale Merchants. b): Industrial Distributors . a):Wholesale Merchants :- • Sell primarily to retailers and provide a full range of services .
b): Industrial Distributors:-
• Sell to manufacturers rather than retailers. Provide several services. • Carrying stock ,offering credit . • Carry broad range of merchandise ,general line . 2. Limited-service wholesalers :- • Offer fewer service than full-line service wholesalers. • Limited are-service wholesalers are of several types : a):Cash-and-carry wholesalers:- •Carry limited line of fast moving goods and sell to small retailers. •Normally do not deliver. b):Truck Jobbers:- • Perform as selling and delivery function. • Carry a semi perishable merchandise ( such as milk , bread ,snack foods). c):Drop shippers :- • Do not carry inventory or handle the product. • On receiving an order, they select a manufacturers , who ships the merchandise directly to the customer. • such as coal ,lumber d):Rack jobbers :- • Serves grocery and drug retailers, mostly in nonfood items. • They send delivery trucks stores,where the delivery people set up toys ,hardware items etc. Brokers and agents:- • Do not take title to goods. Main function is to facilitate buying and selling for which they earn commission on the selling price . Specialize by product line. 1): Brokers :- •Bringing buyers and sellers together . • Paid by a party who hired them . • Do not carry inventory, get involved in financing or assume risk. •Examples :- food brokers ,insurance brokers . 2):Agents:- • Represent either buyers or sellers on a more permanent basis . • several types. a): Manufacturers’ agents : • Represent two or more manufacturers of complementary lines . B): Selling agents : • Have contractual authority to sell a manufacturer’s entire output. c):Purchasing agents : • Generally have long relationship with buyers and make purchases for them . Manufacturers and retailers’ branches and Offices: Wholesaling operations conducted by sellers or buyers themselves rather than through independent wholesalers • Types sales branches and offices • Purchasing Officers . Conclusion: Wholesale marketing is an important part of many manufacturers marketing strategies. By investing in wholesale marketing, manufacturers can increase their sales, reduce their costs, improve their brand awareness, and build stronger relationships with their wholesale customers. Thank You…