Sunday, 1 November 2015

Wholesaling: types of wholesalers

Wholesaling

Wholesaling includes selling goods/service to re-seller. They are different from retailers, Wholesalers pay less attention to promotion, atmosphere, and location, because of they are dealing with business customer rather than final consumers. Wholesaler transaction are usually larger then retail transitions.  Wholesalers usually cover a large amount of goods than retailers. On government regulations and taxes are differently in retailers.

Why Wholesalers

Selling and promoting: wholesalers' sales forces help manufacturers reach many small business customers at a relatively low cost. they have more contacts and buyers often trust them more than they trust a distant manufacturer.

Buying and assortment building: wholesalers are able to select items and build the assortment their customer need, saving them considerable work.

Bulk breaking: wholesalers achieve saving for their customers by buying large carload lots and breaking the bulk into smaller units.

Warehousing: hold inventories. Reduce inventory costs and risks to suppliers and customers.
Transportation: wholesalers can often provide quicker delivery to buyers.

Risk Baring: Taking title and bearing the cost of theft, damage, Spoilage and obsolescence.

Types of Wholesaler

Merchant wholesalers: They are full service and limited service distributors, mill supply houses. Independently own businesses that take title to the merchandises they handle.

Full-service wholesalers: Maintain sales and sales force, carry stock, offer credit, provide management assistance.

Limited-service Wholesalers: Sell a limited line of fast-moving goods to small retailers for cash. Deliver goods to supermarkets, hospitals, restaurants, hotels.


Specialize wholesalers: For example, agricultural assemblers, petroleum bulk plants and terminals, auctions companies. 

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