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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