wholesaler


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Wholesaler

An underwriter or a broker-dealer who trades with other broker-dealers, rather than with the retail investor.

Wholesaler

A company that purchases large quantities of goods from a manufacturer and sells them to stores, where they are resold to consumers. A wholesaler generally is able to extract a better price from the manufacturer because it buys so many good relative to an individual retailer. In theory, this enables the retailer to sell the good at a better price for the consumer. See also: Economies of scale, Warehouse.

wholesaler

a business which buys products in relatively large quantities from manufacturers which it stocks and ‘breaks bulk’, on-selling in smaller quantities to RETAILERS. Thus, wholesalers act as middlemen between the PRODUCERS and retailers of a product in the DISTRIBUTION obviating the need for the producers themselves to stock and distribute their goods to retailers, and likewise retailers to undertake their own warehousing.

Wholesalers typically sell to retailers by adding a MARK-UP on their buying-in prices from suppliers or by obtaining a commission from the retailer.

Traditionally, wholesalers have provided their retail customers with credit facilities and a delivery service, but in recent years CASH AND CARRY wholesaling has become a prominent feature of distribution systems both in the UK and elsewhere. Moreover, with the emergence of large CHAIN STORE retailers (for example supermarkets, and DIY groups) the wholesaling function of stocking and breaking-bulk has itself become increasingly integrated with the retailing operation, with retailers taking particular advantage of the price discounts associated with BULK BUYING directly from manufacturers.

Independent wholesalers may operate a single warehouse or a chain of warehouses giving wider regional coverage and in many cases national distribution. See VOLUNTARY GROUP, CATEGORY DISCOUNTER.

wholesaler

a business that buys products in relatively large quantities from manufacturers, which it stocks and on-sells in smaller quantities to RETAILERS. Thus, wholesalers act as ‘middlemen’ between the PRODUCERS and retailers of a product in the DISTRIBUTION CHANNEL, obviating the need for the producers themselves to stock and distribute their goods to retailers and, likewise, retailers from undertaking their own warehousing.

Wholesalers typically sell to retailers by adding a mark-up on their buying-in prices from suppliers or by obtaining a commission from the retailer.

Traditionally, wholesalers have provided their retail customers with credit facilities and a delivery service, but in recent years CASH AND CARRY wholesaling has become a prominent feature of distribution systems both in the UK and elsewhere. Moreover, with the emergence of large CHAIN-STORE retailers (supermarkets, DIY groups) the ‘wholesaling function’ of stocking and breaking-bulk has itself become increasingly integrated with the retailing operation (see INTERNALIZATION), with retailers taking particular advantage of the price discounts associated with BULK-BUYING direct from manufacturers.

Independent wholesalers may operate a single warehouse or a chain of warehouses giving wider regional coverage and, in many cases, national distribution.

References in periodicals archive ?
Developing and supporting a common vision for store POS scanning is vital to the survival of both the independent and wholesaler in the next decade.
I remember one wine wholesaler who had seven salesmen.
Alisting of IGA wholesalers reads like a Who's Who among the nation's wholesalers.
Ettelman, a principal with Ettelman and Hocheiser of Garden City, NY, is an attorney who often represents beer wholesalers, and his article criticized Mass.
The new editor of Pro Wholesaler, with effect from the March issue, will be John Wood, currently news editor of The Grocer, and a former deputy editor of Convenience Store.
Attracting, training, motivating, rewarding and retaining both home office and independent wholesalers demands the creation of an attractive value proposition that often is based on helping them improve their profitability/incomes and building their image in their marketing region.
Kendall-Jackson elected to pay a $35,000 fine rather than face restrictions on its license to supply wholesalers.
The secondary wholesaler buys from the primary wholesaler and is usually a small firm, distributing products to small mom-and-pop stores.
Given their limited resources, independent operators often depend on their wholesalers to fill these roles and more.
Wholesalers are wholesalers and retailers are retailers; each should concentrate on their strengths.
Relative to productivity, there is less difference in average wholesaler cash compensation by company, suggesting that carriers are obliged to pay a competitive market wage to attract talent.
He added that by the end of this year, 10 to 20 of those wholesalers would control about 90 percent of the business of supplying magazines to supermarkets and other retail chains.