A Merchant Wholesalers Merchant wholesalers a Are independently owned firms

A merchant wholesalers merchant wholesalers a are

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A. Merchant Wholesalers Merchant wholesalers : a. Are independently owned firms that take title to the merchandise they handle. b. Are also called industrial distributors . Most of the firms engaged in wholesaling activities are merchant wholesalers. Merchant wholesalers are classified as either full-service or limited-service wholesalers, depending on the number of functions performed. Full-service wholesalers . Two major types exist: a. General merchandise (or full-line ) wholesalers . Carry a broad assortment of merchandise. Perform all channel functions. Don’t maintain depth of assortment within specific product lines. Examples: Hardware, drug, and clothing industries. b. Specialty merchandise (or limited-line ) wholesalers . Offer a relatively narrow range of products. Have an extensive assortment within the product lines carried. Perform all channel functions. Examples: Health food and automotive industries. Limited-service wholesalers . Four major types exist: a. Rack jobbers . Furnish the racks or shelves that display merchandise in retail stores. Perform all channel functions. Sell on consignment to retailers, which means they: Retain the title to the products displayed. Bill retailers only for the merchandise sold. Examples: Toys, housewares, and health and beauty items. b. Cash and carry wholesalers .
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Take title to merchandise. Sell only to buyers who: Call on them. Pay cash for merchandise. Furnish their own transportation for the merchandise. Carry a limited product assortment. Do not: Make deliveries. Extend credit. Supply market information. Examples: Electric and office supplies and groceries. c. Drop shippers or desk jobbers . Own the merchandise they sell. Do not physically handle, stock, or deliver it. Solicit orders from retailers and other wholesalers. Have the merchandise shipped directly from a producer to a buyer. Are used for bulky products that are sold in large quantities. Examples: Coal, lumber, and chemicals. d. 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. Sell products for cash directly from trucks in their original packages. Examples: Bakery items, dairy products, and meat. B. Agents and Brokers Agents and brokers: a. Do not take title to merchandise. b. Perform fewer channel functions. c. Make their profit from commissions or fees paid for their services. Producers use two types of agents: a. Manufacturer’s agents or manufacturer’s representatives . Work for several producers.
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Carry noncompetitive, complementary merchandise in an exclusive territory.
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  • Fall '08
  • JENIFERM.KISH
  • Marketing, retail outlets, online retailers, merchandise

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