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Chapter 11-14 FInal Exam Study Guide

Retain the title to the products displayed and bill

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perform all channel functions, and sell on consignment to retailers. Retain the title to the products displayed and bill retailers only for the merchandise sold . Hosiery, toys, housewares, and health and beauty items 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. Carry a limited product assortment and do not make deliveries, extend credit, or supply market information. Common in electric supplies, office supplies, hardware products, and groceries . Drop shippers , or desk jobbers , are wholesalers that own the merchandise they sell but do not physically handle, stock, or deliver it. They simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer . Used for bulky products such as coal, lumber, and chemicals, which are sold in extremely large quantities . Truck jobbers are small wholesalers that have a small warehouse from which they stock their trucks for distribution to retailers. Handle limited assortments of fast-moving or perishable items that are sold for cash directly from trucks in their original packages . bakery items, dairy products, and meat.
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“Agents and Brokers” Agents and brokers do not take title to merchandise and typically perform fewer channel functions. They make their profit from commissions or fees paid for their services, whereas merchant wholesalers make their profit from the sale of the merchandise they own. Manufacturer's agents or manufacturer's representatives , work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Manufacturer's agents act as a producer's sales arm in a territory and are principally responsible for the transactional channel functions, primarily selling. Used in the automotive supply, footwear, and fabricated steel industries Selling agents represent a single producer and are responsible for the entire marketing function of that producer. They design promotional plans, set prices, determine distribution policies, and make recommendations on product strategy. Used by small producers in the textile, apparel, food, and home furnishing industries. Brokers are independent firms or individuals whose principal function is to bring buyers and sellers together to make sales. Have no continuous relationship with the buyer or seller but negotiate a contract between two parties and then move on to another task. Used by producers of seasonal products (such as fruits and vegetables) and in the real estate industry A manufacturer's branch office carries a producer's inventory and performs the functions of a full-service wholesaler. A manufacturer's sales office does not carry inventory, typically performs only a sales function, and serves as an alternative to agents and brokers.
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