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 ?
Asking the designated wholesaler to set the price makes the most sense."
Compared to their peers who represent mutual fund or variable annuity (VA) products, ETF wholesalers receive significantly lower ratings from advisors for two critical satisfaction measures: demonstrating an understanding of an advisor's business and recommending products that are well suited to an individual's practice.
For example, while Goose Island Brewery started out as an independent brewery, it is now owned by A-B InBev, and that company calls the shots regarding wholesaler relations.
Wholesalers operate in a highly fractured segment of the distribution chain, and the past two years have seen consolidations among wholesalers large and small because of the soft market and dwindling excess-and-surplus lines premium volume.
Kenary, a Worcester native and president and cofounder of Harpoon Brewery in Boston, said the state's brewers are unlikely to change wholesalers without a lengthy and costly ordeal.
"We are positioning ourselves as the complete solution in the drug class of trade, whether it be chain drug or drug wholesalers," says Salvatori.
So a shop might sell Product A with a pounds 5 markup instead of the wholesaler's pounds 1.
A wholesaler typically controls a budget of $50,000 to $100,000 annually, yet fewer than 25% of them prepare an annual budget!
Owner of that property and a number of others in the wholesale district--a swath of territory centered around Broadway from 26th to 30th Street--Kew was wise to various abuses commonly committed by wholesalers in the area.
Mediceo Holdings, based in Tokyo, was created in October when Kuraya Sanseido Inc., then Japan's largest drug wholesaler, changed its name after making two other Japanese drug wholesalers wholly owned subsidiaries.
Interbrew has now undertaken to make this rebate system totally transparent for all wholesalers, so that they know all rates for all possible volume ranges.
Safeco Life and Investments is now offering a platform to its internal wholesalers and other sales professionals that streamlines distribution and reaches more intermediaries and also effectively uses technology and reduces the cost of the sales process.