COMMERCE 101

TYPES OF WHOLESALERS

Hey Everyone, How is your week so far. The Month of April is beautiful isn't it? LOLZ, Yes it is. Well may you experience all the Goodness of God for this month in Jesus name- Amen.

Today we are continuing where we stopped last week with the above mentioned topic, so let's get started.

Wholesalers can be classified into two broad categories namely:

1. MERCHANT WHOLESALERS- They buy and resell goods on their own account, taking title of the products they handle and conveying the title directly to those they deal with.

FUNCTIONS OF MERCHANT WHOLESALERS:

a. They undertake the storage of Goods.

b. They provide Delivery Services.

c. They arrange credit loans.

d. They provide Promotional Services.

TYPES OF MERCHANT WHOLESALERS:

a. SPECIALIST WHOLESALERS- They are wholesalers who restrict their services to a particular trade and area of their specialization.

b. CASH AND CARRY WHOLESALERS- They are wholesalers that don't offer Credit Facilities nor Delivery Services to their Customers. They expect their Retailers to pick their Orders, Pay Cash and Carry their Purchases.

c. TRUNK WHOLESALERS- They are wholesalers who combine Selling, Delivering and Collection of Goods and Services in one Operation.

d. GENERAL WHOLESALERS- They are wholesalers who purchase goods from different producers, store the goods and prepare them for sale to retailers in small quantities.

e. WHOLESALE CO-OPERATIVE SOCIETY- They are a co-operative society found by wholesalers who purchase goods in bulk or large quantity from the producer at a reasonable price.

2. AGENT MIDDLE MEN- They engage in wholesaling rather than in retailing. They don't take title to the goods but receive commission. They assist in negotiating both sales and purchases of goods.

TYPES OF AGENT MIDDLE MEN:

a. BROKERS- They connect sellers to the buyers. They receive a commission called BROKERAGE. They represent the buyer or seller in negotiating purchases or sales without having physical control over the goods.

b. MANUFACTURER'S AGENT- They are appointed by the producers to market its product in a particular area. They would receive a Commission.

c. AUCTIONEER- They offer goods to prospective buyers through a Public Auction. They sell goods to the highest bidder.

d. FACTOR- They don't buy goods or take title to the goods but they provide warehouse and handling facilities. They also receive a Commission.

e. DEL-CRE-DERE AGENT- They are agents who undertake or guarantee to indemnity. They take the Risk against any loss arising from buyers default in payment. He/ She is to be paid extra commission called DEL-CRE-DERE COMMISSION.

QUESTIONS

Please Check out the Questions below and answer them on your own. Good Luck

1. The Process of Buying, Selling and Distribution of goods and Services is known as?

a. Retail Trade

b. Wholesale Trade

c. Commerce

d. Marketing Mix {WAEC 1989}

2.The Production of Goods in Anticipation of Demand is made possible by?

a. Transportation

b. Advertisement

c. Warehousing

d. Packaging {WAEC 1990}

3. One Advantage of Personal Selling is?

a. Low Cost

b. Immediate Feedback

c. Appeal to many people at a time

d. speedy market coverage {WAEC 1990}

4. Which of the Following converts Raw Materials into Finished Goods?

a. Manufacturing Industry

b. Constructive Industry

c. Commercial Industry

d. Tertiary Industry {WAEC 1989}

5. The Major Divisions of Commerce are?

a. Import, Export & Entre Port

b. Exchange, Consumption & Production

c. Trade, Communication & Warehousing

d. Trade & Aids-to-Trade {WAEC 1990}

6. Branding is a good example of ?

a. Informative Advertising

b. Competitive Advertising

c. Consumerism

d. Persuasive Advertising {WAEC 1989}

7. The Main Purpose of Branding is to?

a. Differentiate Goods from other similar goods made by other producers

b. Introduce the products to the Customer

c. Enhance Turnover/ Sale of Goods

d. Increase the quantity of goods demanded {WAEC 1990}

8. A Number of Shops under one roof is a feature of?

a. Shopping Centre

b. Mail Order Business

c. Supermarket

d. Departmental Store {WAEC 1990}

NOTE: ALL THE QUESTIONS IN THIS POST ARE CREDITED TO WEST AFRICA EXAM COUNCIL 1989 AND 1990 PAPERS. SOME ANSWERS WERE HOWEVER ALTERED TO SUIT THE PURPOSE OF THIS POST. THANKS

This brings us to the end of today's session, pls do attempt the questions above, this is one of the changes we have inputted. Hope this was very helpful to you, leave a comment of what you think of this tutorial and of your questions below. Have a Blessed Day and Remember You are Amazing. God Bless.