Comprehension

3.5. Answer the following questions.

1. At what two stages in the chain of production can wholesalers be important?

2. How can wholesalers help manufacturers?

3. What services do wholesalers provide to retailers?

4. Why has the importance of wholesalers decreased and why have they started to lose trade?

5. For what types of goods have the wholesalers never been important?

6. How do wholesalers try to increase their trade?

3.6. Which words go together?

finished	a) selling
large	b) shop
direct	c) goods
bulky	d) quantities
smaller	e) name
brand	f) product

3.7. Complete the sentences by choosing suitable phrases from the right-hand column.

Wholesalers buy finished goods...	from extractive firms
Retailers buy goods...	to buy in bulk directly from manufacturers
Wholesalers buy raw materials...	from manufacturers in large quantities
Manufacturing and constructive firms sell finished goods ...	from wholesalers in small quantities
Wholesalers collect goods...	to lose trade
Retailers started...	from manufacturers
Wholesalers started...	to wholesalers

3.8. Read and translate text 3b and define if the statements below the text are true or false. Text 3b Methods Used By Wholesalers To Increase Sales

Wholesalers sell mainly to the smaller shops which have become less important because they cannot compete with the lower prices charged by retailers such as chain stores. Wholesalers have tried to increase their own trade by helping the small shop to charge lower prices. This has been done in two main ways (a) voluntary chains and (b) cash-and-carry warehouses.

A voluntary chain, e. g. VG, Spar, Mase, is made up of a number of small shops, usually grocers, who agree to buy most of their supplies from a certain wholesaler who runs the chain. The wholesaler can then buy in greater bulk from the manufacturer at a lower price.

Small shops belong to a voluntary chain because they can buy goods more cheaply from the wholesaler running the chain. Goods can be bought carring the chain's own brand name. Small shops can benefit from the advertising carried out by the chain. Loans can be obtained from the chain for modernizing a shop.

A cash-and-carry warehouse does not offer credit or delivery and the warehouse is run like a supermarket with self-service and check-outs.

Small shops buy from cash-and-carry warehouses because prices are lower as the wholesaler now does not provide credit or transport and so has fewer expenses. Shopkeepers can collect goods and do not have to wait for deliveries.

Summary Wholesalers

Buy raw materials and sell them to