FORMS OF TRADE. WHOLESELLING AND RATAILINGTask 1. Read the text and write out unknown words FORMS OF TRADE
There are different channels of distribution goods and the most important among them there are two aspects wholesale trade and retail trade. A business that acquires goods to sell to the general public is called retail trade. A wholesale business is a middlemen who help goods move from manufactures to consumers and then sell them in turn to the retailer. A middleman is any person or firm that enters the distribution process between the manufacturer and the ultimate buyer. The wholesaler or middleman buys in large quantities from the producer or manufacturer and sells in smaller quantities to the retailer who, in his tarn, supplies the individual customer, but not final consumers. For years no clear distinction was made in marketing between wholesaling and retailing and even today there is much confusion as to their difference. It has been argued that the wholesaler is unnecessary and that the cost of goods could be lowered if he were eliminated from the chain. The wholesaler is often not only necessary but economically indispensable. The manufacturer cannot, in most cases, undertake the handling of innumerable small orders from retailers with all the attendant work of packing and invoicing and dispatching. His main function is to produce goods, and it is uneconomical that his energy and attention should be turned from this to the collection and execution of a multitude of small orders. Being the link between the producer and the retailer, the wholesaler knows the demand and can estimate the quantities required. His commercial agents can advise the manufacturer of changes in fashion, suggest an increase in production of certain types, a decrease in others so, the wholesaler can help the retailer in many ways: for example, the wholesaler studies production and his experience and knowledge of goods and markets enable him to select the best sources of supply. The most common channel runs from the manufacturer to wholesaler to retailer to consumer. This is the longest channel, and requires the most markups. But it is often the most efficient, especially for dealing with small retailers. Retailer is the final link from the producer to the consumer. It is he who sells to the customer in the small quantities required and he who must be able to anticipate the customers' needs. The retailer gets his stock from a wholesaler either by ordering his goods after examining samples or patterns or by paying periodic visits to the wholesaler's warehouse where, from the range of goods that the wholesaler has bought from various manufacturers, the retailer can select those that he thinks will be most suited for the type of customer that buys from the shop. He may also deal direct with a manufacturer. The retailers, however, do more than merely supply a need. According to the type of goods that he sells, the retailer may render certain services. He may sell you shoes and repair them as they need repairing; sell you a watch- and clean the one that won't go; sell you a car and service it. The "little man", that is a small retailer is usually conveniently situated for his customer. There are almost million retailing businesses in the United States. The retailer's primary role is to provide consumers with the products they want when and where they want them. That's why there are so many retail stores and why retail competition is often so intense. Buyers want to take possession of a products at the time they buy it or soon after. So a retailer who too frequently runs out of stock of popular items or sizes will quickly lose customers. The retailer is the party that actually sells the consumer goods manufacturers make. Manufacturers may advertise or otherwise promote their products. But the goods must be present in retail stores, customers must be aware that the goods are there, and the retailer must have a pricing policy that encourages their sale.
WHOLESALING Wholesaling is a part of marketing system. It provides channels of distribution which help to bring 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.
Two-third of the wholesaling middlemen are merchant wholesalers who take title to the goods they deal in. There are 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 stocks 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. RETAILING Retailing is selling goods and services to the ultimate consumer. Thus, the retailer is the most expensive link in the chain of distribution. Being middlemen, they make their profit by charging the customer 25 to 100 per cent more than the price they paid for the item. The retailers operate through stores, mail-order houses, vending machine operators. There are different types of retail stores: department stores, discount houses, cooperatives, single line re-tailers. The major part (over 95 per cent) of retail establishments concentrate on a single line of merchandise for example, food hardware, etc. But nowadays there is a trend for many single line stores to take on a greater variety of supplies. The retailer performs many necessary functions. First, he may provide a convenient location. Second, he often guarantees and services the merchandise he sells. Third, the retailer helps to promote the product through displays, advertising or sales. Fourth, the retailer can finance the customer by extending credits. Also the retailer stores the goods in his outlet by having goods available.
Task 2. Translate the following moving of goods exchange and distribution goods and services channels of distribution wholesale trade retail trade ultimate buyer middleman manufacturer from manufactures to consumers large quantities final consumers to produce goods increase in production decrease sources of supply final link customers' needs wholesaler's warehouse promote advertise lose customers indirect channels purchases or sales complicated channels large assortment ultimate consumer expensive link convenient location
Task 3. Answer the following questions
2. How do we call a person or firm which enters the distribution process between the manufacturer and the ultimate buyer? 3. Is there any clear distribution between wholesaling and retailing? 4. What is the main manufacturer's function? 5. In what ways can the wholesaler help the retailer? 6. The retailer is able to anticipate the customers' needs, isn't he? 7. What other kinds of job can the retailer perform? 8. How many retailing businesses are there in the United States? 9. In what case does the seller lose? 10. What is the aim of the wholesaling? 11. How can you describe a direct channel of distribution? 12. What is an indirect channel of distribution? 13. What channel of distribution is preferable? 14. Is there any difference between a merchant wholesaler and an agent middleman? 15. What is this difference? 16. How does a wholesaler simplify the process of distribution? 17. What would a retailer have to do without wholesalers? 18. What is retailing? 19. What are four different types of retail stores? 20. What are at least two types of retailing that do not include the use of a store? 21. In what way does a retailer serve a customer? 22. In what way does a retailer serve a manufacturer? 23. Which per cent of the price of the goods sold goes to the retailer? 24. What is the trend with a single line retailer now? Task 4. Choose the necessary word and put it in the sentence wholesalers, take title, retailer, stock, channels, assortment, to receive commissions, middleman 1. They use both direct and indirect................................................... of distribution. 2. Agent middlemen do not................................................ to the goods they deal in. 3. Usually wholesaling................................................. stands between the producer and the retailer. 4. A supermarket may.................................................. thousands of commissions items. 5. Usually a wholesaler handles a large....................................................... of items of numerous manufacturers. 6. Agent middlemen don't earn salaries, they...................................................... 7. A wholesaler doesn't deal with the customers, he does with........................................... 8.............................................................. simplify the problems of manufacturers.
Task 5. 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. 1. How will you get a raise? (They don't care.) 2. When did they send you the purchase order? (I don't know.) 3. Who are the purchasing agents? (I can't recall.) 4. Why didn't they get verbal agreement? (I'll try to find out.) 5. Did they staple and file the p.o.? (I don't know.) 6. How large is the sales region? (They don't care.) 7. How much is the toll? (It doesn't matter.) 8. When will she get commission? (She doesn't know.)
Task 6. Translate into English
2. Товари йдуть від оптового посередника до споживача через рознічного продавця. 3. Непряма система збиту більш приємна. 4. Оптові купці придбають товар. 5. Посередник отримує проценти від продажу. 6. Посередник зазвичай веде переговори з приводу купівлі чи продажу. 7. У цьому магазині хороший асортимент товарів. 8. Менеджер по маркетингу скоро отримає підвищення. 9. Ми примушені платити дорого за доставку. 10. Наша фірма відшкодовує нам збитки за обіди та проїзд. 11. Рознічна торгівля – це продаж товару кінцевому споживачу. 12. У західних країнах є різні типи торгових закладів: універмаги, супермаркети, магазини з низькими цінам і т.д. 13. На цей товар можна отримати 10% знижки. 14. Рознічна торгівля може предоставити покупцю тривалий кредит. 15. Ця фірма має безліч торгових точок по всій країні. 16. Рознічний торговець виконує багато важливих функцій. 17. Я не знаю центра міста, мені потрібен довідник магазинів. 18. У торговому центрі ви знайдете всі необхідні вам товари.
Task 7. Put the necessary word in the sentence mailorder, discount, vending machine, guarantees, retailer, extending credit, link 1.................................................. isone function a retailer may perform. 2. You can buy newspapers, cigarettes, cookies from a.................................................... 3..................................................... is the most expensive link in the chain between a producer and a consumer. 4. The firm.......................................... good quality of the product. 5. She doesn't like to go shopping, she prefers to do it by................................................. 6. The department store is having a sale and there is a 20 per cent.................................... on all light dresses. 7. Wholesaler is an important............................................ between a producer and a customer.
Task 8. Change the sentences according to the model Model: My wife usually asks the children to do shopping. My wife usually makes children do shopping. 1. He'll ask single line retailers to take part in the promotion campaign. 2. The chief usually asks his immediate subordinates to perform different functions. 3. It's necessary to ask him to recognize his wholesaling units. 4. It's important to influence ultimate consumer to buy this product. 5. Ask him to buy all these things in the discount house.
Task 9. Make responses to the sentences according to the model Model: I want to ask your brother to do shopping today. Let me do shopping today myself. 1. I want my secretary to prepare the financial statement. 2. The board of directors wants tire officers to plan product development. 3. He wants to speak with my friend about their possible partnership. 4. I want a lawyer to clarify this matter. 5. The executive wants this, manager to start market research.
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Commerce is a moving of goods from the man who wants to sell, to the man who is willing to buy, or, as it is sometimes expressed, the exchange and distribution of goods and services.
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 the one-third of total sales.
1. Are there different channels of distribution goods? Name the most important of them.
1. Оптова торгівля – важливий елемент ринкової економіки.
