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 .
• 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.
• Carry noncompetitive, complementary merchandise in an exclusive territory.
- Fall '08
- Marketing, retail outlets, online retailers, merchandise