Who Are Wholesale Distributors?
Wholesale distributors in simple laymans terms are traders who function as a link between manufacturers and retailers
. It is the job of these traders to purchase products from manufacturers at the cheapest price and then sell it to the retailers at a profit. The retailer then sells the same product to the household consumers. It is seldom that the wholesale distributors deal directly with the final consumer unless they have a warehouse of stored products from where they make direct sales, bypassing the sale to retailers.The job of these traders is complex and diverse. On the one hand they are required to have the necessary finance and management skills in order to run a wholesale distribution business. On the other, they have to be well equipped to handle the related back- end functions like warehouse storing, inventory recording and shipment.
Wholesale distributors are traditionally given legal recognition for ownership of the products they distribute. The most common way that these traders operate is by under cutting their competition. So for example, if a rival trader is buying a particular product to the retailer for five dollars, the wholesale distributors will make sure that he sells at a price lower than that.
Wholesale distributors store and distribute a range of different products from automobiles to plastic toys. If you are a retailer then it is important for you to know about the best distributors in your vicinity so that you can get the best prices. It is usually people who have had careers in sales who later take up distribution as a second career.
Knowing the intricacies of buying and selling is a key skill for a distributor, together with good powers of negotiation. The biggest skill for the distributor however is to fix a price for the retailer in such a way that it leaves a handsome profit margin for himself while at the same time appearing to be a good value for the retailer.
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