Sales Management

Wholesaling involves selling products through distributors, who will then resell at a higher price to their customers. Primary production and manufacturing industries (or their agents) commonly sell products this way.

Producers of goods in many industries commonly sell their products at a discounted price to retailers using the following strategies:

Self marketing
If a business is large (or profitable) enough, or an industry appropriately structured, the producer may retail their own products. For example wholesale plant nurseries frequently sell their plants direct to the retail nurseries. These might be sold from the back of a truck calling on retail nurseries, or perhaps by taking orders over the phone off a catalogue.

Cooperatives
This generally involves a number of different businesses joining together to form a joint marketing effort. In many farming areas, for instance, a number of individual farmers may form a cooperative. The cooperative may be able to afford to develop and operate a processing or packaging facility, which would not be viable for a farmer to do alone. Each of the participating farmers will perhaps own shares in the operation.

Agencies
Agencies operate in many different industries with the sole purpose of marketing products produced by other businesses. Examples include:

• Farmers who send their produce to a central market which is frequented by buyers. Agents maintain permanent offices or stalls in those markets from which they represent and sell produce for their clients, the farmers, collecting a fee (commonly a percentage).
• Book distribution agencies that specialise in supplying books from the publisher to the retail outlets such as bookshops and newsagencies. The books are generally supplied to the distributor on a consignment basis. The distributor then sells the books to retailers on a sale or return basis.

Regulated Systems
Government departments, statutory authorities and other agencies have been established in different industries in various countries, with the role of controlling the marketing of particular products. Examples include the Department of Trade, the American Sheep Industry Association and the Australian Wheat Board. 

Using Intermediaries
Wholesaling intermediaries are firms that handle the distribution of products from the manufacturer to the retailer or business user. Wholesaling intermediaries can be independent or owned by the manufacturers.

Independent Intermediaries
Independent intermediaries are not owned or controlled by any manufacturer. They do business with many different manufacturers and customers. Both merchant wholesalers and merchant brokers are examples of independent intermediaries.

Merchant wholesalers buy goods from manufacturers and sell them to retailers. Because they purchase the goods, they become the legal owners of the goods (i.e.. they take ‘title’ to them), which means they can set their own prices and develop their own marketing strategies for those goods. Taking title carries risks though: the merchant wholesaler may suffer losses if the goods don’t sell, or are stolen, or damaged, or become obsolete or out-of-date.

The services provided by merchant wholesalers include delivery, credit, repairs and marketing assistance. Many merchant wholesalers have their own sales force that visit businesses and maintain product displays. Some merchant wholesalers provide a more limited service, although they still take title to the goods. Examples of limited merchandising wholesalers include the following:

• Mail order wholesalers – sell products to small retailers through catalogues or the internet, rather than a sales force. Payment is by cash or credit prior to delivery. Often used by small businesses in remote areas.
• Online sellers -many of these may take orders, without actually holding stock; then pass those orders back to the producer or manufacturer to make the deliveries; keeping a % of the money paid.
• Cash-and-carry wholesalers – provide low-cost goods to small retailers. The retailer pays cash directly at the wholesaler’s premises and organises delivery of their purchases.
• Truck jobbers – deliver goods to small businesses for their inspection. Often used to sell cigarettes and perishable goods such as bread, fruit, vegetables and plants.

Merchant agents and brokers provide services in exchange for commissions. They do not take title to the product, although they may take possession for a short time. Agents tend to represent buyers or sellers on an ongoing basis, while brokers are engaged for a short period. Types of merchant agents include the following:

• Manufacturer’s agents or reps – are independent salespeople contracted by manufacturers to sell products. Agents generally carry a range of lines of non-competing products, for which they receive a percentage when they make a sale. Their contract with the manufacturer specifies such things as selling prices and sales territory.
• Selling agents – salespeople who market a whole product line or the manufacturer’s entire stock. .Selling agents have unlimited territories and control over the distribution, pricing and promotion of the products. Includes import/export agents working in the furniture, textiles and clothing industries.
• Commission merchants – sales agents generally selling agricultural products on consignment.. The seller may specify a minimum price, but the agent is free to sell for the highest price they can get, and they receive a commission on the sales price.
• Merchant brokers – intermediaries that identify and bring sellers and buyers together in return for a fee when the transaction is completed. Generally brokers work in markets with lots of small buyers and sellers such as real estate and used equipment.

Manufacturer-Owned Intermediaries
Some large firms have their own intermediary channels. This allows them to have complete control over their operations even though they are run as separate business facilities. Examples include sales branches and sales offices which provide sales and services to specific geographic areas.

WHY STUDY WITH ACS?

There are lots of reasons why you should sign up to do this course with us, including:

• The course is detailed to ensure that you have the level of knowledge required to apply the practices in the work place, improving your sales success rate
• Within each lesson you have the opportunity to apply your learning to activities which enables you to practice different concepts and expand your own research in areas of interest
• Knowledge of these key sales techniques will enable you to stand out from other applicants when it comes to applying for jobs, it will also give you greater confidence
• Having the knowledge of different ways to deliver sales will enable you to work in many different sectors and business types, giving you flexibility now and in the future
• Our subject specialist tutors will be there to support you throughout your course, they are only too happy to share their industry knowledge and experience with you
• When studying with us you set your own deadlines, meaning you study at your own pace enabling it to fit around other commitments

TAKE THE NEXT STEP AND ENROL NOW!

You can enrol on the course now, but if you have any questions about the content of the course or studying with ACS, then please get in touch with us today - use our FREE COURSE COUNSELLING SERVICE to get in touch with our expert tutors. They will be pleased to help you!