Wholesale sales are carried out in large quantities.
Wholesaler is a business that sells, buys or contracts wholesale . The concept differs from the notion of retailer , which is the business whose activity is carried out at retail.
For example: "I'm going to a wholesaler to buy disposable plates for the party" , "If you want to save money, you can buy non-perishable food at a wholesale supermarket" , "The man at the shoe store told me that the wholesaler still "I had not sent him the new models."
Work of a wholesaler
It is important that we know the hallmarks that define the wholesaler and the work they do:
- It is responsible for purchasing merchandise from the producer directly or from another wholesaler.
- In most cases it also transports the goods.
- You must undertake the storage and conservation of all the products you have for sale in the best possible conditions.
Typically, the wholesaler buys directly from the producer.
Classification
When carrying out a classification of wholesalers, it should be noted that it can be done based on five different criteria:
- The place where their premises and establishments are located.
- The type of products you are responsible for selling.
- The ways in which you carry out your professional activity.
- Whether or not you transfer ownership of the merchandise that you are responsible for putting up for sale.
- The existing links with producers or clients.
In the same way, it is also common for wholesalers to be classified based on the use they make of technology in their businesses. In this case, the most common thing is that they are divided into three groups: distance or online sales , self-service and traditional .
Characteristics of the activity of a wholesaler
The wholesale seller or distributor, in general, does not come into direct contact with the final consumer . Its most common function within the distribution chain is to be the link between the producer or manufacturer and the retailer.
This, however, may vary. Some wholesalers sell directly to the final consumer, who must purchase a minimum quantity to access the special price. On the other hand, there are producers who sell their products to the final consumer, avoiding going through a wholesale distributor.
An example
We can analyze a hypothetical case in the distribution of corn . This product is grown in the field and sold by tons to a wholesale distributor. He buys the production in large quantities and, in turn, resells them to the retail distributor. It is the retailer who ultimately sells the corn to the final consumer.
In each of these steps of the chain, the price of corn will increase. The farmer can sell his production to the wholesale distributor at a price of 2 dollars per kilogram . The wholesaler, in turn, sells to the retailer at a rate of 3 dollars per kilo , while the retailer offers the kilo of corn to the final consumer for 3.8 dollars .
Another meaning of the term wholesaler
In addition to all of the above, we cannot ignore that there is also another meaning for the term wholesaler.
Specifically, it must be said that in the past it was used to refer to any student who during their studies was attending the classes of the elders .