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Independent wholesaling intermediaries

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leonardo tartaglia

on 14 November 2016

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Transcript of Independent wholesaling intermediaries

Independent wholesaling

- Many wholesaling intermediaries are independently owned. These firms divide into two major categories: merchant wholesalers and agents and brokers.
- Merchant wholesaler: takes title to the goods it handles. it divides in two categories: full-function and limited-function merchant.
- Rack jobber: is a full-function merchant wholesaler that markets specialized lines of merchandise to retail stores.
- Cash and carry: wholesaler performs most wholesaling functions, except financing and delivering.
- Truck wholesaler: limited-function merchant wholesaler that markets perishable food items.
- Drop shipper: limited-function merchant wholesaler that accepts orders from customers and forwards those orders to producers, which then ship directly to the customers who placed the order.
- Mail-order wholesaler: limited-function merchant wholesaler that distributes catalogs instead of sending sales personnel to contact costumers.
-Agents and brokers: they normally perform fewer services than merchant wholesalers, working mainly to bring together buyers and sellers.
- Commission merchants: agent that takes possession of goods shipped to a central market for sale, acts as the producers agent, and collects an agreed-upon fee at the time of the sale.
- Auction house: gathers buyers and sellers in one location and allows buyers to overlook the merchandise before submitting competing purchase offers.
- Brokers: work mainly to bring buyers and sellers together. A broker represent either the buyer or the seller not both. When the transaction is completed, the broker receives the money from the client.
- Selling agent: exerts full authority over pricing decisions and promotional outlays, and it often provides financial assistance for the manufacturer.
- Manufactures' representative: agents that represent manufactures of related but noncompeting products and receives a commission on each sale.
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