TYPES OF WHOLESALERS.
Hey Guyz, It’s a Happy Tuesday to be Alive, Live,
Learn and have Fun. I don’t know about you but I am glad to be alive and be
well. I pray we are able to appreciate life more because there are sooooo many
people who would do anything to have the Peace and life that we have. So be
Grateful.
Today we are continuing from where we stopped in
commerce 101, with the above topic.
Wholesalers
can be classified into two board categories, namely:
1. Merchant
Wholesalers.
2. Agent
Middle Men.
MERCHANT WHOLESALERS
They buy and resell goods on their own account
taking title to the product they handle, and convey the title directly to those
they deal with.
The merchant Wholesalers are
the middlemen who take little to goods (purchase)
and sell them to retailers for further selling individual consumers
on piece meal basis. They purchase the commodities in bulk, operate warehouse
for storage, offer credit and goods to the retailers. They also sometimes offer
advice to the market retailers
as well as producers. They
are also persons who buy and sell goods with their own account and the
ownership. They also offer cash and credit card Retailing, Merchandising and Promotion support to their suppliers, They have their own sales force, do their own market research, and provides Pre-sale Installation, and Post-sale Services.
The merchant wholesalers are further sub divided into two main categories:
ownership. They also offer cash and credit card Retailing, Merchandising and Promotion support to their suppliers, They have their own sales force, do their own market research, and provides Pre-sale Installation, and Post-sale Services.
The merchant wholesalers are further sub divided into two main categories:
1. FULL LINE WHOLESALERS.
Full line wholesalers are those who supply a complete line of goods to a business. For example, a hospital supply company may supply all the requirements of the hospital alone. Or a grocery supplier may carry a full stock of grocery goods etc.
2. LIMITED LINE WHOLESALERS.
The limited line wholesalers perform limited functions than do merchant wholesalers. They specialize in a limited line of products such as auto spare parts and sanitary goods and washing machines. The limited line wholesaler is into different types.
Full line wholesalers are those who supply a complete line of goods to a business. For example, a hospital supply company may supply all the requirements of the hospital alone. Or a grocery supplier may carry a full stock of grocery goods etc.
2. LIMITED LINE WHOLESALERS.
The limited line wholesalers perform limited functions than do merchant wholesalers. They specialize in a limited line of products such as auto spare parts and sanitary goods and washing machines. The limited line wholesaler is into different types.
TYPES
OF MERCHANT WHOLESALERS:
1. Specialist Wholesalers.
They restrict their services to a particular trade
and area of their specialization.
2. Truck Jobbers.
They are the one who deliver the goods to the retailers from their trucks and wagons.
3. Rack Jobbers.
They generally supply health and beauty aid to the super markets.
4. Drop Shippers.
They instead of having an inventory, ship the goods direct from the factory to the pre arranged retailers.
They are the one who deliver the goods to the retailers from their trucks and wagons.
3. Rack Jobbers.
They generally supply health and beauty aid to the super markets.
4. Drop Shippers.
They instead of having an inventory, ship the goods direct from the factory to the pre arranged retailers.
5. Cash and
Carry Wholesalers.
They don’t
offer credit facilities/delivering services to their customers. They expect
their retailers to pick their orders, pay cash and carry away their purchases.
6. Wholesale
Co-operative Society.
They are
found by retailer stores who purchase goods in bulk/ large quantity from the
Producers at a reasonable price.
Functions of Merchant Wholesalers:
1. They undertake the storage of goods.
2. They provide delivery services.
3. They arrange credit terms.
4. They provide promotional services.
AGENT MIDDLE MEN.
They
engage in wholesaling rather than in retailing. They don’t take title to the
goods but they receive Commission. They assist in negotiating both sales and
purchases of goods.
TYPES OF AGENT MIDDLE MEN:
1. BROKER.
They
connect sellers with buyers. They receive commission called Brokerage. They
represent the buyer/seller in negotiating purchases/sales without having
physical control over the goods involved.
2. AUCTIONEER.
They offer
goods to perspective buyers through public auction. They sell goods to the
highest bidder.
3.
COMMISSION AGENT.
He acts on behalf of foreign importer. His function is to buy goods on behalf of client abroad and to dispatch them in accordance with the instructions. He receives a commission for his service.
He acts on behalf of foreign importer. His function is to buy goods on behalf of client abroad and to dispatch them in accordance with the instructions. He receives a commission for his service.
4.
UNDERWRITER.
They enter into agreement with promoters of newly started company which have not been taken up by the public. For this guarantee they are paid commission known as underwritten commission.
They enter into agreement with promoters of newly started company which have not been taken up by the public. For this guarantee they are paid commission known as underwritten commission.
5.
FACTOR.
They don’t
buy goods or take title to the goods but they provide warehouse and handling
facilities. They also receive Commission.
6. TRAVELING AGENT.
Sometimes wholesalers appoints number of agents who goes from place to place , show catalogs, price lists etc. to retailers , book orders and forward them to their principals who executes them. They receive their commission in return of their service.
Sometimes wholesalers appoints number of agents who goes from place to place , show catalogs, price lists etc. to retailers , book orders and forward them to their principals who executes them. They receive their commission in return of their service.
7.
SELLING AGENT.
Sometimes Wholesalers and manufacturers appoint certain shop-keepers in different parts of the country as their selling agents. These agents receive commission on all sales in addition to the expenses which they have incurred on behalf of principal.
Sometimes Wholesalers and manufacturers appoint certain shop-keepers in different parts of the country as their selling agents. These agents receive commission on all sales in addition to the expenses which they have incurred on behalf of principal.
8.
DEL-CRE-DERE AGENT.
They are
agents who undertake/guarantee to indemnity. They principal against any loss
arising from buyers default in payment. He is to be paid extra commission
called Del-Cre-Dere Commission.
9.
FORWARDING AGENT.
This is the type of agent who is
engaged in forwarding the goods to their destination on certain charges.
10.
CLEARING AGENT.
This agent is involved in clearing the imports on behalf of their principal. The duties include taking the delivery of the goods from the ship and attending to custom formalities for certain commission.
This agent is involved in clearing the imports on behalf of their principal. The duties include taking the delivery of the goods from the ship and attending to custom formalities for certain commission.
DISTINCTION
BETWEEN FACTOR AND BROKER
Factor.
1. He has the possession of goods or documents which entitle him to the possession.
2. He carries out the trade with his name.
3. He is himself liable in respect of the contract of sale.
4. He receives payment from the customer and gives him discharge.
5. He has lion in respect on goods in respect of his commission. Broker
1. He has the possession of goods or documents which entitle him to the possession.
2. He carries out the trade with his name.
3. He is himself liable in respect of the contract of sale.
4. He receives payment from the customer and gives him discharge.
5. He has lion in respect on goods in respect of his commission. Broker
Broker.
1. He has no possession of the goods which he sells.
2. He brings together both the parties to a transaction. The sale is made in the name of the principal.
3. He is not liable in respect of such contracts.
4. He does not receive payment of the value of the goods from the customer and cannot give his discharge.
5. He has lien on goods.
1. He has no possession of the goods which he sells.
2. He brings together both the parties to a transaction. The sale is made in the name of the principal.
3. He is not liable in respect of such contracts.
4. He does not receive payment of the value of the goods from the customer and cannot give his discharge.
5. He has lien on goods.
CITATION:
Some articles on today’s topic where
gotten from the following websites.
You can check them out for more
information and further reading.
This concludes our session for
today, Hope it was fun and very easy to grasp. For your questions send me a
msg- dividiamond@gmail.com and
please leave your comments below. Until we meet again remain ever blessed, and
remember you are for SIGNS & WONDERS. God Bless you.
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