Types of ws


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Types of ws

  1. 1. TYPES OF WHOLESALERS Prof Jayashree Vispute
  2. 2. DEFINITIONS  Wholesaling  All activities involved in selling goods and services to those buying for resale or business use.  Wholesaler  A firm engaged primarily in wholesaling activity.
  3. 3. WHOLESALING  Wholesalers add value by performing the following functions:  Selling and promoting  Buying and assortment building  Bulk-breaking  Warehousing  Transportation  Financing  Risk bearing  Market information  Management services and advice
  4. 4.  Merchant Wholesalers 1. Full-service wholesalers 2. Limited-service wholesalers  Brokers and Agents  Manufacturers’ and retailers’ branches and offices
  5. 5. FULL SERVICE W/SALERS  Buying  Creating assortments  Subdividing  Selling  Transportation  Warehousing  Financing  Risk taking  Market Information  Management assistance
  6. 6. LIMITED-SERVICE WHOLESALERS  Cash-and-carry wholesalers -Sell a limited line of fast moving goods to small retailers for cash  Truck wholesalers (jobbers) – sell and deliver a limited line of semi perishable goods to supermarkets, grocery stores, hospitals, restaurants and hotels  Drop shippers – serve bulk industries such as coal, lumber, heavy equipment. They assume title and risk from the time an order is accepted to its delivery.
  7. 7.  Rack jobbers – serve grocery retailers in non food items. Delivery people set up displays, price goods, keep inventory records, they retain title to goods and bill retailers only for goods sold by the retailer.  Producer’s cooperatives – assemble farm produce to sell in local markets.  Mail-order wholesalers – send catalogs to retail, industrial and institutional customers, orders are filled and sent by mail, rail, plane or truck
  8. 8. BROKERS AND AGENTS  Brokers and agents do not take title of the goods.  Brokers  Bring buyers and sellers together and assist in negotiation  Agents  Manufacturers’ agents  Selling agents  Purchasing agents  Commission merchants
  9. 9. MANUFACTURERS’ AND RETAILERS’ BRANCHES AND OFFICES Wholesaling operations conduced by sellers or buyers themselves rather than through independent wholesalers. Major retailers set up purchasing offices in major marketing centers. Purchasing officers - Perform roles similar to brokers and agents; however, these individuals are employees of the organization
  10. 10. WHOLESALING  Trends in Wholesaling  Price competition is still intense  Successful wholesalers must add value by increasing efficiency and effectiveness  The distinction between large retailers and wholesalers continues to blur  More services will be provided to retailers  Many wholesalers are going global
  11. 11. FRANCHISING  A privilege or right granted to a person or a group by a government, state or sovereign. Authorisation granted by a manufacturer to a distributor or dealer to sell his products.  Franchising is a method used by business for the marketing and distribution of products and services.
  12. 12. FRANCHISING  The two parties involved are: 1. The Franchisor: The Franchisor is the provider of the franchise. Typically he owns the trademark/product/service and licenses the trademark to another party. He may provide support for the running of the franchise. In exchange, he receives a fee, commonly known as the royalty or franchise fee. This fee varies from industry to industry.
  13. 13. FRANCHISING  Franchisee Franchisee is the person who pays for and purchases a franchise from a franchisor and operates a business using the name, product, business format and other items provided by the franchisor. The franchisor helps the franchisee in setting up the business and managing it.
  14. 14. ROLESFunction 1. Site selection 2. Design 3. Employees 4. Products to be sold 5. Prices 6. Advt. & Promotion Franchisor Oversees Provides design Training Decides Sets/Recommends At national level Franchisee Chooses with approval Incurs the cost Hires and pays Can change only with approval Follows Local requirements
  15. 15. ONGOING BENEFITS  Field supervision of operations  Management Reports  Merchandising and employee retraining  National advertising  Centralized planning  Market data and guidance  Auditing and record keeping  Group insurance plans
  16. 16. ADVANTAGES OF FRANCHISING Low Risk -- eliminates the risk of learning from a completely new business -- risk of whether the business will be successful or not is much lower for the franchisee.