wholesaler

Examples of wholesaler in the following topics:

• Distribution Centers vs. Direct Store Delivery

  • This includes manufacturers who operate sales offices to perform wholesale functions and retailers who operate warehouses or otherwise engage in wholesale activities.
  • An example of a wholesaler is Optimum Sleep, which sells furniture wholesale.
  • Wholesalers perform a number of useful functions within the channel of distributions.
  • By providing this linkage, wholesalers assist both the producer and the buyer.
  • The wholesaler assists the producer by making products more accessible to buyers.

• Functions of Intermediaries

  • There are four generally recognized broad groups of intermediaries: agents, wholesalers, distributors, and retailers.
  • Unlike agents, wholesalers take title to the goods and services that they are intermediaries for.
  • Wholesalers rarely sell to the final user; rather, they sell the products to other intermediaries such as retailers, for a higher price than they paid.
  • Distributors function similarly to wholesalers in that they take ownership of the product, store it, and sell it off at a profit to retailers or other intermediaries.
  • In this way, they can maintain a closer relationship with their suppliers than wholesalers do.

• Channel Power, Control, and Leadership

  • First, if we look at the early years of marketing, the role of the wholesaler (to bring the producer and consumer together) was most vital.
  • Consequently, during this period, the wholesaler led most channels.
  • The wholesaler?
  • Wholesalers and retailers undertake size competition in order to gain channel control.
  • Describe why manufacturers, wholesalers and retailers take the lead in channel partnerships

• Selecting Marketing Channels

  • How many retailers and wholesalers in a particular market should be included in the distribution network?
  • First, if we look at the early years of marketing, i.e. pre-1920, the role of the wholesaler (to bring the producer and consumer together) was most vital.
  • Consequently, during this period, the wholesaler led most channels.
  • The wholesaler?
  • The wholesaler should lead where the manufacturers and retailers have remained small in size, large in number, relatively scattered geographically, are financially weak, and lack marketing expertise.

• Categories of Business Products

  • Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler or a wholesaler and a retailer.

• B2B Channels

  • B2B describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.

• The Significance of Marketing Channels

  • Typically, if a wholesaler or a retailer is removed from the channel, its function will either shift forward to a retailer or the consumer, or shift backward to a wholesaler or the manufacturer.

• Types of Marketing Channels

  • A marketing channel where intermediaries such as wholesalers and retailers are utilized to make a product available to the customer is called an indirect channel.
  • The most indirect channel you can use (Producer/manufacturer --> agent --> wholesaler --> retailer --> consumer) is used when there are many small manufacturers and many small retailers and an agent is used to help coordinate a large supply of the product.
  • Dual distribution describes a wide variety of marketing arrangements by which the manufacturer or wholesalers uses more than one channel simultaneously to reach the end user.

• B2C Channels

  • The seller makes its products or purchases them at a wholesale price, then sells them at a higher (or retail) price to the consumer, thus earning a profit.

• Settling the List Price

  • Much of the time, stores charge less than the suggested retail price, depending upon the actual wholesale cost of the item or if product is purchased in bulk from the manufacturer or in smaller quantities through a distributor.
  • In certain supply chains, where a manufacturer sells to a wholesale distributor, and the distributor in turn sells to a retailer, the use of a suggested retail price is used to denote the price to use when selling to the consumer.