Understanding Wholesale Types Functions Benefits and Differences with Retail

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In the production goods supply industry there is a term wholesale which also becomes a component in the product distribution process In order for a product to reach consumers, there must be intervention from wholesale activities because it is also impossible for producers to go directly to consumers. The existence of this wholesaler is very profitable, especially in areas far from the center of direct production. Even though sometimes the price offered has a slight difference with the price from the center or even the price from the center becomes cheaper, this is not a problem for consumers. Take a look around you, there must be a lot of grocery stores right? Do you feel helped by the existence of these wholesale shops because you can get a need item quickly. Does know the difference between a wholesaler and a retailer? Because some people can't tell the difference between the two. So, so that understands this, let's look at the following is the second or third distribution channel after distributors or . According to et al, wholesalers are business units whose activities buy or resell products to retailers, traders or industrial, institutional and commercial users. Furthermore, according to Alma (2011), wholesale is all marketing activities that move goods from producers to retailers or to other marketing institutions. Meanwhile, according to Griffin and Ronald wholesalers are independent entities that sell various types of consumer goods or business goods produced by various manufacturing companies.

Wholesale can also be referred to as a type of activity in the sale of goods or services to those who wish to resell them for business purposes. Based on the definitions that have been described above Bahamas Phone Number List it can be concluded that wholesale is a marketing (technique) company that sells products in large quantities produced by various manufacturing companies and then resells them to retailers and other wholesalers. Buy Books at Various Kinds of Wholesale Although in general wholesale is part of the company's marketing by selling products from manufacturing companies and then resale, it turns out that there are also three types of wholesale, you know, namely wholesale traders; brokers and agents; as well as branches and offices of manufacturers. Well, here is the description. Based on How It Works . Merchant Wholesaler A wholesaler is a type of proprietary business that operates independently and takes title to the merchandise it handles. These wholesalers are also known as distributors, jobbers, or factory supply agencies. These wholesale traders are usually the largest single group of wholesalers, and it is even estimated that 50 percent of the wholesale business is controlled by them. Wholesale traders can be classified into two things, namely: Full Service Wholesaler, which provides storage services, has a sales force, sells on credit, delivers goods, and has management assistance, which only offers some services to its suppliers and customers.



Wholesale Brokers and Agents This type of wholesale is clearly different from wholesale traders. The most striking difference between the two is that in this type of wholesale they later take over the rights to the goods, then carry out only a small part of the sales functions. Meanwhile, the similarity with wholesalers is that they usually specialize in a certain type of product or type of customer. The main function of wholesale brokers and agents is to assist in the buying and selling process. For this, they will receive a commission from the sale price of the product. These wholesale brokers and agents account for 11 percent of total wholesale sales volume. This type of wholesale has special specialization on certain products and customers,Brokers (Brokers) That is the type of intermediary that has the main function of bringing together sellers and buyers, as well as helping smooth the negotiation process. This broker or broker will later get a commission from the party who has hired his services. Powered By VDO. Agent (Agent) Namely intermediaries who represent sellers or buyers in the transaction process. In this case, it is usually more permanent than the broker. These agents have several types, namely: Manufacturer's Agent, namely a type of intermediary agent who works for several producers and handles products that do not compete with each other in an area with a certain agreement. Selling Agent, which is a type of intermediary agent who is authorized to sell all products of a company.