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Q: •Discuss the differences between a retailer and a wholesaler in the marketing chain
A: Distributors frequently have a business relationship with manufactures that they represent. Many distributors maintain exclusive buying agreements that limit the number of participants or enables distributors to cover a certain territory. [ The distributor becomes the manufacture?s direct point of contact for prospective buyers of certain products. However, distributors rarely sell a
manufacture?s goods directly to consumers. Wholesale representatives and retailers generally find distributors to buy products for resale. Wholesalers Wholesalers generally buy a large quantity of products directly from distributors. High-volume purchase orders typically improve a wholesaler?s buying power. Many distributors provide discounts for a certain number of items purchased or the total amount spent on merchandise. Wholesalers acquire merchandise, such as telephones, computers, bicycles, clothing, televisions and furniture. The goods are frequently destined for retailers. Retailers Retailers consist of small and large for-profit businesses that sell products directly to consumers. To realize a profit, retailers search for products that coincide with their business objectives and find suppliers with the most competitive pricing. Generally, a retailer can buy small quantities of an item from a distributor or a wholesaler. For instance, a retail merchant who wanted to purchase a dozen lamps could contact lighting distributors to inquire about pricing. ]
jeffreymcmillan|Points 110|
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Asked 6/24/2013 8:35:13 PM
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