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11 - Review Wholesalers in a Private Enterprise System

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Wholesaler –distributor that moves goods from one business to another business.
Wholesale member clubs –businesses that offer a variety of consumer products to members through a warehouse outlet.
Channel members-thebusinesses that take part in a channel of distribution.
Rack jobbers-wholesalers that manage inventory and merchandising for retailers by counting stock, filling it in when needed and maintaining store displays.
Drop shippers-own the goods they sell but do not physically handle the actual products (drop shippers sell the goods to other businesses and have the producer ship the merchandise directly to the buyer.
What are 5 wholesaling activities:Buying, financing, Storing, Transporting, selling.
Do wholesalers work with final consumers in any significant way?They do not work with final consumers in any significant way.
How is a full-service wholesaler different from a limited-service wholesaler?The full-service wholesaler takes title to the products they sell and provide a full range of distribution activities. The limited-service (specialized) wholesalers may not provide services.
10. What types of benefits does a wholesaler provide to other members of a distribution channel?assist with distribution activities between businesses, provide marketing services and typical wholesaling activities include buying, selling, transporting, storing, and financing. They accumulate the products of many manufacturers, develop appropriate assortments for their customers, and distribute the products to them.
What happens to the costs of distribution activities when a wholesaler is used to complete them?The costs of the activities are lower when a wholesaler is used.
Why have the number of wholesalers not decreased due to consolidation of businesses?Wholesalers are still highly demanded by small- and medium-sized businesses. There are more small- and medium-sized businesses and manufacturers than large operations.
Wholesale franchises and cooperatives-groups of small businesses that affiliate because of the benefit gained from cooperating for marketing and distribution activities.


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