Unit V. Wholesaling and Retailing

I. Remember the terms:

· wholesaling гуртова торгівля

· retailing роздрібна торгівля

· middleman посередник

· merchant wholesaler гуртовий скупник

· to take title to the goods придбати товар як власність

· ultimate consumer кінцевий споживач

· mail-order house посилочна фірма

· vending machine operator оператор торгівельних автоматичних

машин, котрі продають дрібні товари

· discount house магазини із зниженими цінами

· extending credit довгостроковий кредит

· outlet ринок збуту, торгівельна точка

II. Read and translate the text:

Wholesaling is a part of marketing system. It provides channels of distribution, direct and indirect, which help to bring goods to the market. Indirect channels are generally 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.

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. 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 manufactures he reduces the problem of both manufacturer and retailer. The store-keeper doesn’t have to deal directly with thousands of different people. He usually has a well-stocked store and deals with only a few wholesalers.

Retailing is selling goods and services to the ultimate consumer. Thus, the retailer is the most expensive link in the chain of distribution. Being middlemen, they make their profit by charging the customer 25 to 100 per cent more than the price they paid for the item.

The retailers operate through stores, mail-order houses, vending machine operators. There are different types of retail stores: department stores, discount houses, cooperatives, single line retailers. The major part (over 95 per cent) of retail establishments concentrate on a single line of merchandise, for example food hardware (продукти харчування), etc.

The retailer performs many necessary functions. First, he may provide a convenient location. Second, he often guarantees goods and services he sells. Third, the retailer helps to promote the product through displays, advertising or sales. Forth, the retailer can finance the customer by extending credit. Also, the retailer stores the goods in his outlet by having goods available.

III. Fill the gaps in the following sentences with the given words:

before buying client individual product wants weakness

If you want to be both a successful negotiator and salesperson you should:

1. Know your … and its main features.

2. Know the strengths and … of competing products.

3. Find out who makes the … decisions in your client’s firm.

4. Plan each sales interview … it takes place.

5. Match what you are selling to each client’s … and needs.

6. Listen to what your … tells you.

7. Remember that each client is an … not a number.

IV. Translate the following sentences into English using your dictionary:

1) Гуртова торгівля – важливий елемент ринкової системи.

2) Товари ідуть від гуртового посередника до споживача через роздрібного продавця.

3) Надають перевагу непрямій системі збуту.

4) Посередник отримує відсотки від продажу.

5) Ми змушені багато платити за доставку.

6) Це була джентльменська угода (agreement).

7) Роздрібна торгівля – це продаж товару кінцевому споживачу.

8) На цей товар можна отримати 10% знижку.

9) Ця фірма має багато торгівельних точок по всій країні.

10) У торгівельному центрі ви знайдете всі необхідні вам товари.

11) Роздрібна торгівля може надати покупцю довготривалий кредит.

12) Існують різні типи торгівельних закладів: універмаги, супермаркети, магазини з низькими цінами тощо.

V. Translate the text from English into Ukrainian and title it:

Retailing is the business of selling products to the general public. Most retailers are from shops or stores which are called outlets. Many countries have large retail chains which are organized nationally and sell a standardized selection of products. Their outlets are often in shopping centres (US “malls”), where there is a large variety of stores in the same location.

Many large retailers operate from out of town locations with parking facilities, known as either hypermarkets (over 30,000 square metres) or superstores (under 30,000 square metres). They may be on a retail park, where there are a number of large stores.

Department stores such as Harrods in London are large shops which sell a wide variety of products, usually with location in a city centre. As the name suggests, they are organized in departments, each with its own manager.

VI. Answer the questions:

1. What is the aim of wholesaling?

2. What is a direct channel of distribution? Give an example.

3. What is an indirect channel of distribution?

4. Is there any differences between a merchant wholesaler and an agent middleman?

5. What is retailing?

6. What types of retail stores do you know?

7. In what way does a retailer serve a customer?

8. What per cent of the price of the goods sold goes to the retailer?

9. What would retailers have to do without wholesalers?

Дата добавления: 2014-11-29