Wholesale business.

Ephy

Active member
This refers buying of goods from producers in bulk and then selling them to retailers.
Wholesalers are classified according to the mode of operation, place of operation and range of products. Here is the classification :
1. General merchandise wholesale - they deal with a wide variety of goods. There products include foodstuffs, hardware, clothing or animal feeds. They operate in a place where it is difficult to attract other wholesalers.
2. General line wholesalers - they deal with one line of products. Example a wholesaler who deals with only animal products, foodstuffs, medicine, clothes or hardware products.
3. Specialised wholesalers - they only deal with one type of goods within a given line of products. Example specialises in medicine.
4. Nationwide wholesalers - Distribute there products in all parts of the country.
5. Regional wholesalers - they sell there products in certain parts of the country.
6. Mobile wholesalers - they move from one place to another supplying their products to retailers using vehicles.
7. Cash and carry wholesalers - they sell their goods on cash basis, where customers are given a chance to pick the goods they want and pay for them on the spot.
8. Rack jobbers - they specialise in selling particular lines of products to retailers. They arrange their products in racks.
 

Donkiz

Active member
Buying goods in wholesale and selling them to retailers is a very lucrative business, though when you check the profit made from each single item sold to a retailer you will notice that the profit's not really much, but when those little profits are summed together you will see that it's huge.

The downside of wholesale business is that it requires lots of capital to start, and that's what scares away most people that would have liked to join the business. Unless you are fortunate enough to meet manufacturers or producers that deems you to be trustworthy and decides to give you their goods on credit, which is rare but not impossible especially if you have good recommendations from well known and trusted wholesalers.
 
D

Deleted member 27180

Guest
I agree with you on the huge capital requirement before one can start up a wholesale business which is a major problem. A solution to this problem is to opt to be a distributor for the maniufacturer instead of a wholesaler which is more profitable. All u need to do is to have a well drafted proposal, submit it to the company and a guarantor. Is that simple. Alot of new companies are looking for distributors. Your marketing and advertising skill must be very sharp because the business is a game of numbers
 

Abigael

Valued Contributor
The whole sale business is a very good one to venture into. I am glad to have read about those types of wholesellers that I did not know about. Such wholesale businesses do pretty well in urban areas and densely populated regions. This is because retailers from rural areas go to towns to buy stock for their shops. I always see other shops doing both wholesale and retail, which is also great and earns them profits. This business requires so much capital to start though. So, many people get into with partners.
 
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