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Wholesaling
Wholesaling
Wholesaling
Wholesaling
Wholesaling
Wholesaling
Wholesaling
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Wholesaling

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  • 1. WHOLESALING
  • 2. <ul><li>Wholesaling is concerned with the activities of those persons or establishments that sell to retailers and other merchants and / or industrial, institutional and commercial users but do not sell in large amounts to consumers. </li></ul><ul><li>– US Bureau of Census </li></ul>
  • 3. <ul><li>Selling and promotion </li></ul><ul><li>Bulk breaking </li></ul><ul><li>Warehousing </li></ul><ul><li>Transportation </li></ul><ul><li>Financing </li></ul><ul><li>Risk bearing </li></ul><ul><li>Market information </li></ul><ul><li>Management services and counseling </li></ul>
  • 4. Types of Wholesalers <ul><li>Merchant wholesalers </li></ul><ul><li>Full service wholesalers </li></ul><ul><li>Wholesale merchants </li></ul><ul><li>Industrial distributors </li></ul><ul><li>Limited service wholesalers </li></ul><ul><li>Cash and carry wholesalers </li></ul><ul><li>Truck wholesalers </li></ul><ul><li>Drop shippers </li></ul><ul><li>Rack jobbers </li></ul><ul><li>Producers co-operatives </li></ul><ul><li>Mail order wholesalers </li></ul>
  • 5. <ul><li>Brokers and Agents </li></ul><ul><li>Brokers : Chief function is bringing buyers and sellers together and assisting in negotiation. They are paid by the party who hired them & do not carry inventory, finance goods or assume risk. </li></ul><ul><li>Eg: food brokers, real estate brokers & insurance brokers. </li></ul><ul><li>Agents </li></ul><ul><li>manufacturers agents </li></ul><ul><li>selling agents </li></ul><ul><li>purchasing agents </li></ul><ul><li>commission merchants (agricultural marketing) </li></ul>
  • 6. <ul><li>3. Manufacturers and Retailers’ branches and offices </li></ul><ul><li>Sales branches & Sales offices </li></ul><ul><li>Purchase offices </li></ul>
  • 7. <ul><li>Not too worried about location, ambience or promotions – prefer to be in the main market. </li></ul><ul><li>Deal with other businessmen and not consumers. </li></ul><ul><li>Deal with a specific group of products only. </li></ul><ul><li>Much larger trading area. </li></ul><ul><li>Much larger transactions with suppliers and retailers. </li></ul><ul><li>Believe in low margins but high volumes. </li></ul>

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