Mada za sehemu hiiWholesale TradeMada 3
- Concepts of Wholesale
- Functions of a wholesaler
- Types of wholesaler
Wholesalers can be classified according to the areas served by them or according to the goods offered by them. Moreover, according to the services performed by them. Hence we have:
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Nationwide wholesalers These are wholesalers who are established in all major towns in order to serve all parts of the country. These types of wholesalers operate on a large scale like Tanzania Training Corporation (TTC).
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Regional or local wholesalers These wholesalers operate only in a particular area of the country and may offer a wide range of goods or a specified range of goods.
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Export and import wholesalers These are wholesalers specialized in foreign trade; they may sell outside the country (export) or buy from outside the country (import).
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General wholesalers These wholesalers offer varieties of goods in a number of fields, e.g., groceries, hardware, frozen food, sports goods and even households.
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Specialized wholesalers These are wholesalers who carry a particular range of goods. These kinds of wholesalers usually offer a great variety of goods but which are in one line of production or field of production, e.g., books, soft drinks, hardware, etc.
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Full-service wholesalers These are wholesalers who provide many services which are required to push up sales. Those marketing services are like buying and assembling of goods, storage, transportation, etc. Full-service wholesalers are such as general wholesalers, export and import wholesalers and specialized wholesalers.
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Limited-service wholesalers These are those who perform particular functions and leave the others. This means they only perform a few functions and these are as follows:
- Mail order
- Truck wholesalers
- Drop shippers / rack jobbers
- Cash and carry wholesalers
- Rack jobbers
Traders in East Africa experience a number of problems that prevent them not only from maximizing their profit but also from providing the types and magnitude of services to the customers that are available in the more commercially developed countries. Some of them are:
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Small scale operation Due to the lack of finance, most traders in East Africa operate in a very small size which means they cannot buy their goods in bulk and hence fail to get large discounts.
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Lack of capital Many traders face the problem of insufficient money to run the business smoothly. This results in traders conducting mostly on cash basis rather than credit.
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Poor transport and communication This makes difficult the process of transport and distribution of goods and services to reach the users or consumers.
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Lack of training Many people who enter the business world thinking that trade is simple "give and take affairs" soon discover that they are ill-equipped to handle the intricacies of the profession.
| POINT OF DIFFERENCE | WHOLESALER | RETAILER |
|---|---|---|
| 1. Scale of business | Large scale | Small scale |
| 2. Nature of goods | Specialization in one line | Wide varieties of goods |
| 3. Location | Central location | Near customers |
| 4. Link | Between producer and retailer | Between wholesaler and consumer |
| 5. Profit margin | Small | Large |
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