Learning Outcomes Explain meaning of wholesaling & wholesaler? Explain types of wholesalers? Explain Brokers and agents, commission merchants?
Concept Wholesaling :- All activities involved in selling goods and services to those buying for resale or business use. Wholesaler :- A firm engaged primarily in wholesaling activities. Wholesalers buy mostly from producers and sell mostly to: Retailers, Industrial consumers, and Other wholesalers.
Flow of activitiesManufacture(producer) Merchant Wholesale wholesaler Manufacturers’ Sales Branches and Offices Brokers/ Agents retailer customer
Types of Wholesalers5 Merchant Wholesaler Independently Owned Business that Takes Title to the Merchandise it Handles. Manufacturers’ Sales Branches and Offices Wholesaling by Sellers or Brokers/ Agents Buyers Themselves They Don’t Take Title to Rather Than Through the Goods, and They Independent Perform Only a Few Wholesalers. Functions.
Merchant wholesalers Full- service wholesalers -Wholesalers merchants - Industrial distributors Limited-service wholesalers - Cash and carry wholesalers - Drop shippers
Cont…..- Rock jobbers- Producers cooperatives- Mail-order wholesalers
Manufacturers’ and retailers’ branchesand offices Sales branches and offices Purchasing offices
Brokers and agentsBrokers:- An individual or firm which acts as an intermediary between a buyer and seller, usually charging a commission. For securities and most other products, a license is required.Ex: - food brokers real estate brokers insurance brokers security brokers
Agents Represent either buyers or sellers on a more permanent basis than brokers do. Ex:- Textiles agent
Manufacturers’ agents An agent representing one or more manufacturers in selling related but noncompeting goods, usually on a commission basis and in a particular territory. Ex:- Reliance fresh,more
Selling agent someone who sells goods (on commission) for others. A person who sells something for someone else, generally in return for a commission based on a percentage of the sale price. Ex:- Industrial machinery and equipment
Purchasing agent An agent who purchases goods or services for another. The purchasing agent is required to know about the various purchasing policies and the techniques. Ex:- LIC agent Tata company agent
Commission merchants A person who buys or sells goods for others on a commission basis. EX:- Farmers and manufacturers who have large quantities of goods to sell send them to the cities to the commission merchant, who sells them for them.