LESSON 11
WHOLESALING
Text
Wholesaling is a part of the marketing system. It provides channels of distribution which help to dring goods to the market. Generally indirect channels are used to market manufactured consumer goods. It could be from the manufacturer to the wholesaler, from the retailer to the consumer or through more complicated channels. A direct channel moves goods from the manufacturer or producer to the consumer.
Wholesaling is often a field of small business, but there is a growing chain movement in the western countries. About a quarter of wholesaling units account for one-third of total sales.
Two-third of the wholesaling middleman are merchant wholesalers who take title to the goods they deal in. There arc also agent middlemen who negotiate purchases or sales or both. They don’t take title to the goods they deal in. Sometimes they take possession though. These agents don’t earn salaries. They receive commissions. This is a percentage of the value of the goods they sell.
Wholesalers simplify the process of distribution. For example, the average supermarket storks 5.000 items in groceries alone, a retail druggist can have more than 6.000 items. As ,a wholesaler handles a large assortment of items from numerous manufacturers he reduces the problem of both manufacturer and retailer. The store-keeper does not have to deal directly with thousands of different people. He usually has a well-stocked store and deals with only a few wholesalers.
Active Vocabulary
wholesaling – оптовая торговля
to provide channels обеспечивать системой (сбыта)
indirect channels непрямая, опосредованная система (сбыта)
complicated channels сложная система (сбыта)
retailer розничный торговец
chain movement движение к объединению
wholesale unit (зд.) контора по оптовой
торговле total sales совокупная продажа
middleman посредник, комиссионер
merchant wholesaler оптов к скупщик
wholesaling middleman оптовый посредник (скупщик)
to take title to the goods приобретать товар как собственность
agent middleman посредник между производителем и покупателем
to negotiate purchases вести переговоры по поводу
or sales купли или продажи
to earn salary зарабатывать жалование
to receive commissions получать комиссионные (процент от продажи)
grocery бакалейная торговля
to handle 1) управлять,
2) торговать (амер.)
assortment ассортимент
Comprehension Questions
- What is the aim of the wholesaling?
- How can you describe a direct channel of distribution?
- What is an indirect channel of distribution?
- What channel of distribution is preferable?
- Is there any difference between a merchant wholesaler and an agent middleman? What is this difference?
- How does a wholesaler simplify the process of distribution?
- What would a retailer have to do without wholesalers?
- They use both direct and indirect… |
Vocabulary Practice
Exercise 1. Choose the necessary word and put it in the sentence.
of distribution |1 wholesalers
- Agent middlemen do not… to the |
goods they deal in |2 lake title
- Usually wholesaling … stands |
between the producer and the retailer. |3 retailer
- A supermarket may … thousands of |
commissions items |4 stock
- Usually a wholesaler handles a large … |
of items of numerous manufacturers |5 channels
- Agent middlemen don’t earn salaries, |
they… |6 assortment
- A wholesaler doesn’t deal with the |
customers, … does. |7 to receive
- … simplify the problems of |
manufacturers |8 middleman
Dialogue
John is explaining his new job to his wife, Susan. He is a sales trainee for a company.
John It’s a great job, you know. The salesmen are paid salaries instead of being on commission.
Susan Why do you find it great? You can earn less money.
John Well, it’s a regular weekly salary. And besides we get reimbursed for everything lunches and dinners even the football tickets, the car, gasoline, tolls.
Susan That’s really great.
John And I’m going to get a raise in three months.
Susan And what are you going to see
John Foam rubber.
Susan What is it used for?
John It is used to make couches and beds, generally ideal with furniture manufacturers.
Susan So you will travel much, won’t you?
John No. Delivery is a part of our wholesaling operation. Foam is sold and delivered by the truckloads. It is rather bulky and it is expensive to have it shipped a big distance. We are going to deal with buyers who are in this region.
Susan That’s fine. I don’t want you to travel too much. By the way I want to know more about sales procedure.
John At first I go to see a buyer. We discuss what he n needs After that I send him a written quote. If our prices suit him, he’ll call us and send an order.
Susan Do you take orders over the phone?
John Yes. The buyers are always in a hurry and a letter would take too much time to come. If it’s a verbal agreement we call it gentlemen’s agreement.
Susan And what happens after the verbal agreement?
John We receive a written purchase order. It is called p.o.- and it has a number that we use for all future correspondence on that order. The office then retypes the order form and the p.o. and order form are stapled together and filed.
Susan It sounds organized. Whom do you usually deal with in a company?
John Well, I’ll deal with purchasing agents. But I could deal with any administrator from the president on down, in some cases.
Susan Good. Soon you’ll get your raise.
John Yes. Selling is usually a stepping stone to higher positions in management.
Susan Don’t worry, dear. If it doesn’t work out, we still have my job.
Active Vocabulary
sales trainee – стажер по торговле
to be on commission – получать комиссионные с продажи
to reimburse – возмещать, восполнять
to get a raise – получить повышение
toil – пошлина, плата за услуги
quote – назначение цены
delivery – доставка
gentlemen’s agreement – джентльменское соглашение
verbal agreement – устное соглашение
purchase order (p.o.) – заказ на покупку
to deliver – доставлять
to staple – (зд.) проверять
to file – подшивать, хранить
stepping stone – средство для достижения цели
Vocabulary Practice
Exercise I. Change the sentences according to the model.
Model: When did they want to reimburse for our expenses? (I don’t remember).
I don’t remember when they wanted to reimburse for our expenses.
- How will you get a raise? (They don’ t care).
- When did they send you the purchase order? (I don’t know).
- Who are the purchasing agents? (I can’t recall).
- Why didn’t they get verbal agreement? (I’ll try to find out).
- Did they staple and file the p.o. ? (I don’t know).
- How large is the sales region? (They don’t care).
- How much is the toll? (It doesn’t matter).
- When will she get commission? (She doesn’t know).
Exercise 2. Make up the conditional sentences.
Model: consult the middleman / he – smart
If he were smart, he would consult the middleman.
1) be a wholesaling middleman / he – interested
2) work for themselves / men – independent
3) earn a good salary / he – happy
4) use direct channels / business – successful
5) have the secretary do it / she – there
6) handle it well / he -fail
7) order it next month / I – rich
Exercise 3. Answer the questions.
- Would you like to be on commission?
- What expenses do you get reimbursed for at your job?
- What factors do you need to get a raise?
- Why isn’t a verbal agreement always sufficient?
- What would you prefer to be : a wholesaler or a retailer?
- What is a stepping stone to higher positions in your business?
- Оптовая торговля – важный элемент рыночной системы.
- Товары идут от оптового посредника к потребителю через розничного торговца.
- Непрямая система сбыта более предпочтительна.
- Оптовые скупщики приобретают товар.
- Посредник получает проценты от продажи.
- Посредник обычно ведет переговоры по поводу купли или продажи.
- В этом магазине хороший ассортимент товаров.
- Менеджер по маркетингу скоро получит повышение.
- Мы вынуждены дорого платить за доставку.
Exercise 4. Translate into English.
73
- Наша фирма возмещает нам расходы за обеды и проезд
- Это было джентльменское соглашение.