Two major types of full service wholesalers exist

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Two major types of full service wholesalers exist. General Merchandise (full time) wholesalers carry a broad assortment of merchandise and perform all channel functions. These wholesalers do not maintain much depth of assortment within specific product lines. Speciality merchandise (limited time) wholesalers offer relatively narrow range of product but have an extensive assortment within the product line carried. They are found in health drinks, automative parts and seafood industries. Wholesaler perform all these functions Product availability Assortment convenience Bulk Breaking Customer service Credit & Finance Advice & Technical Support Market coverage Inventory holding Customer support Market information Order processing Sales contract Result Value added (Reflected in Margins earned by wholesalers) Marketing function performed for Manufacturer Marketing function performed for Customer Annamalai University
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170 Fig. 3. Types of wholesaling intermediaries Four major types of limited service wholesalers exist. Rack jobbers furnish the racks or shelves that display merchandise in retail stores, perform all channel functions and sell on consignment to retailers which means that they retain the title to the products displayed and bill retailers only for the merchandise sold. Familiar products such as hosiery, toys, house-wares, health and beauty aids are sold by rack jobbers. Cash and Carry Wholesalers take title to merchandise but sell only to buyers who call on them, pay cash for merchandise and furnish their own transportation for merchandise. They carry a limited product assortment and do not make deliveries on credit or supply market information. This wholesaler is common in electric, office supplies, handware products and groceries. Drop Shippers or desk jobbers are wholesalers who own the merchandise they sell but do not physically handle, stock or deliver if they simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a Merchant Wholesaler Full Service Wholesaler General merchandise Speciality merchandise Limited Service Wholesaler Rack Jobbers Cash and Carry Drop Shippers Truck Jobbers Agents Manufacturer’s Agent Selling Agent Agents and Brokers Brokers Manufacturers Branches and Offices Branch Offices Sales Offices Annamalai University
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171 producer to a buyers. Drop shippers are used for bulky products like coal, lumber and chemicals. Truck jobbers are small wholesalers who have a small warehouse from which they stock their trucks for distribution to retailers. They usually handle limited assortments of fast moving or perishable items. Agents and Brokers : Unlike merchant wholesalers agents and brokers to not take title to merchandise and typically provide fewer channel functions. They make their profit from commission or fees paid for their services where as merchant wholesalers make their profit from the merchandise sold.
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