WHOLE SALING

Wholesaling includes all activities involved in selling goods or services to those who buy for resale or business use.

Whole sellers differ from retailers in a number of ways. first , wholes sellers pay less attention to promotion , atmosphere and location, because they are dealing with business customers rather than final consumes, second, wholesale transactions are usually cover a larger trade area than retailers. Third, the government deals with wholesalers and retailers differently in regard to legal regulations and taxes.

Major Wholesaler Type :- The major types of wholesalers

  1. merchant wholesalers

  2. Brokers and Agents and

  3. Manufacturers’ Agents.

  1. Merchant wholesalers :- They are independently owned businesses that take title to the merchandise they handle. In different trades they are called jobbers, distributors, or mill supply houses.

  2. Brokers and Agents:- They differ from merchant wholesalers in two ways. They do not take title to goods, and they perform only few functions. Their main function is to facilitate buying and selling, and for their they earn a commission.

  3. Manufacturer’s Agents :- manufacturer’s agents represent two or more manufacturers of complimentary lines. They enter into a formal written agreement with each manufacture covering price policy, territories, order-handling procedures, delivery service and warranties and commission rates. They use there wide contacts to sell the manufacturer’s products, manufacturer’s agents are used to sell such lines as apparel, electrical afford to maintain their own sales-force and by large manufactures who want to use agents territories.

Wholesaler Marketing Decisions

Product Assortment and service decisions :- The wholesaler’s product is their assortment wholesalers are under great pressure to carry a full line and maintain sufficient stork for immediate delivery.

Place Decision:- Wholesalers typically located in low rent, low tax area and put little money into their physical settings and offices.