Wholesaling

2. Wholesaling:
 Wholesaling is concerned with activities of
those persons or establishments that sell to
retailers and other merchants or industrial or
institutional and commercial users.
 Wholesalers or wholesale trader is a trader who
purchases goods in large quantities from
manufacturers and resells to retailers in small
quantities.

3.  Sales and promotion of chosen company products.
 Breaking bulk to suit consumer requirements.
 Transportation of goods to the consumers.
 Storage and protection of the goods till they are
sold out.
 Bearing the risks associated with the business.
 Collecting and disseminating market information to
suppliers and customers.

4.  Collects orders from large no of small retailers and
distributes goods in small lots.
 Wholesalers places orders in advance. Producers do
not need to keep elaborate inventory.
 The manufacturer can thus focus on quality and
quantity to be produced.
 Helps in maintaining price stability.

5.  Wholesaler is a reservoir from where retailer draws
his requirements.
 Reduces retailer’s risk of carrying extra stock.
 Wholesalers deliver goods promptly.
 Retailer gets information about new products,
promotions in advance from the wholesalers.

6.  Full Service
 General Merchandise
 General line
 Speciality
 Rack jobbers (Western)
 Voluntary chains (Western)
 Producer Co-operatives

7.  Limited Behaviour
 Cash and carry
 Drop Shippers(Western)
 Truck wholesaler
 Mail order
 Retailer Co-operatives
 Manufacturer’s agents
 Commission agents
 Selling agents
 Auction companies

8.  Assembling or aggregating the goods.
 Warehousing of the goods.
 Transportation of goods.
 Financing the business.
 Risk bearing
 Providing market information.
 Grading and Packing.

9.  Wholesaler may fail to give correct
information to the manufacturer or the
retailers/institutional customers.
 Influence the pricing of the goods to
retailers and consumers.
 Consumers have no say in pricing and
quality.

10.  SelectingTarget markets.
 Marketing mix
 Product decisions
 Pricing decisions
 Promotions
 Place

11.  Cash and carry is a form of trade in which
goods are sold from a wholesale warehouse
operated either on self service basis or on the
basis of samples.
 Cash and carry Wholesalers are becoming a
key supplement for operators who need
emergency replenishment of food items.
 C&C is expanding into agriculture, baked
goods, frozen products etc.