2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The market does not stand still, it is in constant development, taking into account the needs of the population. Wholesale trade is the activity of selling goods with services to those who purchase them for resale or further use (tailoring, processing). It is an important link that ensures the acceleration of the entire process of turnover in the market. Products move through distribution channels, production and consumption are synchronized.
The role of the state
One of the main economic tasks of any country is the restructuring of the wholesale trade structure, which contributes to the development of small business. Experts note that the volume of large trade turnover has recently decreased. Therefore, another important task that stands is to stop the decline in these operations. The warehouse is in need of restoration. It is necessary to build new premises with modern equipment, restore and reconstruct those places of storage of goods that are already in operation. State policy solves another important problem on which wholesale trade depends. This is the development and improvement of the competitive environment, the avoidance of monopoly, the promotion of domestic productsproduction.
Wholesale functions
In market conditions, this type of trade plays a different role. Regarding those who supply goods, the following functions are distinguished:
- Marketing service.
- Concentration and business development.
- Investment security for the turnover of goods.
- Reducing business risk.
- Transfer of ownership of products.
Regarding entrepreneurs of small retail organizations, there are other tasks that wholesale trade solves. These functions are:
- Product delivery.
- Storing and stockpiling.
- Estimated demand.
- Conversion of the existing assortment (production) to sales.
- Consulting services, information service.
- Lending to retail businesses.
Some Features
Wholesale is a large network of organizations with different forms of ownership. Its improvement not only creates conditions for reforms, but also contributes to the stability of the consumer market. The efficiency of trade depends on the wholesalers. Even with a lot of capital, manufacturers often spend money on developing production, and not on organizing sales. Retailers that offer a wide range of products to customers usually buy in lots from a specific wholesaler, rather than in batches from different businesses. It's believed thatthe most important is the wholesale trade of goods, associated with the supply of stores with a wide and complex assortment. It is profitable for enterprises that produce products to sell in ever larger batches without any additional sorting according to certain requests. Not every large company has the premises and people to transform the range from industrial to commercial. The way out in this situation is wholesale services.
Wholesale food products deserve special attention. This is a difficult business, as it is associated with risks, based on the knowledge of managers about the changing market conditions. You need to be able to make decisions quickly. People who are engaged in such activities should know mathematics and be good organizers. A plus will be such a quality as the ability to bargain. It should be noted that the food trade is a labor-intensive activity, it requires an irregular working day, often it is necessary to work on weekends and holidays. If managers are lazy, then bankruptcy may threaten. In the event of liquidation of enterprises, there is a risk of large losses, since products that are not sold quickly deteriorate. They are sold at bargain prices or thrown away.
Wholesale trade is of great importance in the system related to the sale of products. It creates channels through which goods are sent to intermediate and end users.
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