Екзаменаційний білет №5

TRAFFIC OF GOODS

Producing some goods means following a certain procedure. This procedure is called a manufacturing process. But the goods produced appear on sale after a long chain including packaging, dispatching, storage etc.

Екзаменаційний білет №6

FROM PRODUCER TO WHOLESALER

When raw materials are changed into finished goods they are still far from the ultimate consumer. The producer cannot sell them directly to prospective customers, because they will not want to buy in bulk. That is why the middleman appears. He buys in bulk and breaks it into small portions to meet the demand of retail trade.

The middleman or wholesaler stores goods in warehouse suitable to keep them sound and not damaged. Some goods need special packing to protect them from moisture or shocks; some are perishable and should be cold stored. To meet these requirements goods should be properly dispatched by the forwarders, in charge of appropriate packing and handling of cargo. But when they reach the wholesaler he takes full responsibility for their good condition, and if some get spoiled or damaged the loss is his.

The wholesaler has to keep his warehouses cool enough or warm enough, dry and appropriately equipped to provide the best possible conditions for storage, it means extra costs. These costs are consequently included in the price of the stored commodities. Hence the wholesaler, like previously the producer, is interested in selling the goods as soon as possible, to reduce the cost of storage, to regain money frozen in excessive stock and to avoid risks of damage and loss.

Екзаменаційний білет №7

FROM WHOLESALER TO RETAILER

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.

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.

Two-thirds 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 consists of the sale of goods or merchandise from a fixed location, such as a department store or kiosk, or by post, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the ultimate customer. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility like electric power.

Shops may be on residential streets, shopping streets with few or no houses, or in a shopping center or mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing also referred to as B2C type of e-commerce, and mail order are forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.