Mada za sehemu hiiRetail TradeMada 3
- Definition
- Function s of retail trade
- Different types of retailers
- Buying goods/purchasing: A retailer purchases goods from manufacturers or wholesalers. This involves selecting a variety of products that are in demand and will be suitable for resale to the final consumers.
- Selling goods: The retailer sells goods to consumers in reasonable quantities. The retailer acts as the intermediary between the wholesaler or manufacturer and the end consumer, ensuring that products reach the market.
- Transportation of goods: Retailers are often responsible for arranging the transport of goods from the manufacturer or wholesaler to their premises. In some cases, they may also arrange transportation of goods directly to the consumer's location, ensuring efficient delivery.
- Storage: Retailers store goods at their premises until they are needed by consumers. This helps ensure that goods are readily available when customers make purchases, minimizing delays and stockouts.
- Sales promotion: This involves strategies to increase the visibility of goods and encourage consumers to make purchases. Retailers engage in advertising, displaying goods attractively, and offering promotions such as discounts or special deals to boost sales.
- Marketing survey: Also known as market research, this function involves studying consumer preferences and demand trends. Retailers gather information about the kinds of products consumers want, their preferred quality, and the quantities they expect to buy. This allows retailers to make informed decisions about which products to stock.
- Stock control and bookkeeping: Retailers manage inventory and ensure that there is a proper balance between stock levels and consumer demand. This function also involves maintaining accounting records, such as tracking sales, purchases, and expenses. It ensures proper financial management of the business, including the efficient use of assets, business premises, and equipment.
- Pleasant and courteous: A good retailer should be polite and pleasant in their dealings with customers, creating a positive shopping experience and encouraging customer loyalty.
- Good buyer: The retailer must know how to select the right products to buy, when and where to purchase them, in what quantities, and at what price. This skill directly influences the retailer's profitability.
- Demand forecasting: A good retailer should be able to predict and understand customer preferences regarding quality, quantity, price, brand, and packaging. They should also anticipate changes in trends, tastes, and fashion.
- Good administrator: Successful retailers need to be good at managing stock, controlling inventory, overseeing the activities of staff, and ensuring the smooth operation of the business.
- Honesty: Retailers should be trustworthy and honest in their dealings with customers, maintaining integrity in all transactions.
- Cooperation with suppliers: Retailers should maintain good relationships with their suppliers, paying them promptly and working cooperatively to ensure a steady supply of goods.
- Accessibility: Retailers are located in most residential areas, making it convenient for consumers to access goods and services without having to travel long distances.
- Wide range of choices: Retailers offer a variety of products as they source goods from different producers. This allows consumers to choose from a broad selection.
- Close contact with customers: Retailers maintain regular contact with their customers, helping them make informed purchasing decisions and offering personalized services.
- Market research assistance: Retailers assist producers and wholesalers in gathering valuable information about consumer preferences and demands, which is useful for market research and product development.
- Credit facilities: Many retailers offer credit facilities, allowing customers to purchase goods on credit. This enables customers to maintain their standard of living while managing their finances.
A retailer before starting a retail trade, he needs a working capital for buying goods for sale, capital for buying the fixed assets such as e.g weighing machines, furniture etc.
He can raise capital through the following ways.
- Loan from the bank: A retailer can apply for a loan from a bank at a reasonable interest rate, especially if they have valuable goods that can be used as security.
- Borrowing from friends or relatives: A retailer can get money from trusted friends or family members to start or expand the business.
- Personal savings: A retailer may save small amounts of money over time, and after several months or years, the total savings can be used as capital.
- Admitting a partner: A retailer can invite another person to join the business as a partner who will contribute capital and share responsibilities.
- Getting help from government or NGOs: Some government programs or non-governmental organizations offer capital to small retailers through grants or soft loans.
- Trade credit from suppliers: Retailers may receive goods on credit from suppliers and pay after selling, which reduces the need for immediate capital.
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