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wholesaling.ppt
1. Wholesaling
• Financing
• Risk bearing
• Market
information
• Management
services and
advice
• Selling and promoting
• Buying and assortment
building
• Bulk-breaking
• Warehousing
• Transportation
Functions performed by wholesalers:
2. Types of Wholesalers
• Merchant Wholesaler: an independently
owned wholesaler business that takes title
to the merchandise it handles.
Largest group of wholesalers.
Account for 50% of wholesaling.
Two broad categories:
• Full-service wholesalers.
• Limited-service wholesalers.
3. Types of Wholesalers
• Brokers and agents:
Do not take title to goods.
Perform only a few functions.
Specialize by product line or customer type.
• Brokers bring buyers and sellers together.
• Agents represent buyers on a more
permanent basis.
Manufacturers’ agents are the most common
type of agent wholesaler.
4. Types of Wholesalers
• Manufacturers’ sales branches
and offices:
Involves wholesaling by sellers or
buyers themselves rather than through
independent wholesalers.
5. Trends in Wholesaling
• Need for ever greater efficiency.
• Demands for lower prices.
• Winnowing out of suppliers who are not
adding value based on cost and quality.
• Distinction between large retailers and
wholesalers continues to blur.
• Wholesalers will continue to increase the
services provided to retailers.
• Wholesalers are now going global.