Retail Vs Trade
By the time goods reach a wholesaler or retailer, they have usually gone through many stages of production. Raw materials harvested or extracted by a primary industry are sold to a manufacturer who produces and ships finished goods to a wholesale or retail establishment. Wholesalers and retailers do not materially alter the goods they sell-they simply make them available to their customers. Some general merchandisers are including grocery departments in their stores.
The Grand Bazaar in Istanbul is often cited as the world’s oldest continuously-operating market; its construction began in 1455. The Spanish conquistadors wrote glowingly of markets in the Americas. In the 15th century, the Mexica market of Tlatelolco was the largest in all the Americas. The retail trade business of food commodities from agricultural products by selling them around and not having a fixed place or selling them to the houses of the community or customers. In general, when selling retail, you sell the product for a higher price per unit than a wholesaler.
All of that profit will sit directly with you and won’t be shared with a wholesaler. Use the margin reports in your system to ensure your products are making you the best margins possible and make changes if needed. Having control allows you to ensure that your brand identity isn’t diluted and isn’t damaged. You’re in control of the retail price, where your product is seen, how it’s presented and what other products it’s displayed alongside. You are in control of the marketing of the product, so can ensure that the messages being put out to the world are consistent with how you want your product to be viewed.
In theory, it sounds like an ideal answer for many companies who are able to handle the sale of goods over multiple channels at once, and that want to retain direct contact with the consumer. However, there are a number of issues, both positive and negative, to bear in mind before going down this path. Operating as a retailer is ideal if you want to retain complete control of your product lines and you enjoy having a hands on relationship with your customers. There is a lot to think about if you’re in this position, but you are able to be responsive to the demands of your customers and their potentially changing needs and desires. It may not always be possible to have control over how your product is merchandised, any discounted prices they choose, or what competitive products it’s displayed alongside.
Others have found new ways to market their products, attracting customers who prefer to shop at locations that can offer more personalized service or stock products that aren’t available from the big retailers. Technological innovations have changed the way the industry does business. Prior to this development, customers at grocery stores had to ask a clerk to measure out dry goods in the required quantities. Pre-packaged goods, fresh fruit, vegetables, meat and dairy products were not available at the grocery store. You had to visit the butcher, or the greengrocer, or the dairy to buy these items. Wholesalers of building materials (24%) and food, beverages & tobacco (21%) dominate the industry, accounting for nearly half of total sales in 2008.
This percentage represents obligations that are not reasonably expected to be liquidated within the normal operating cycle of the business but, instead, are payable at some date beyond that time. This percentage represents tangible assets held for sale in the ordinary course of business, or goods in the process of production for such sale, or materials to be consumed in the production of goods and services for sale. This figure expresses the average number of days that receivables are outstanding.