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The cash-flow factor: is debtfactoring for you. (Special Feature/Debt Factoring).: An article from: NZ Business

This digital document is an article from NZ Business, published by Profile Publishing Ltd. on May 1, 2003. The length of the article is 1407 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: The cash-flow factor: is debtfactoring for you. (Special Feature/Debt Factoring).
Author: Rey Chapman
Publication: NZ Business (Magazine/Journal)
Date: May 1, 2003
Publisher: Profile Publishing Ltd.
Volume: 17 Issue: 4 Page: 30(3)

Distributed by Thomson Gale

Price: $5.95

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Wholesale Business - Factor Indicators in Wholesale Business

There are factors that indicates assured places in the business world and become successful. The first factor to consider is that wholesalers help customers merchandise their goods. Wholesalers do this by telling them about the good practices of the efficient merchants among their customers. They get involved in the promotional advertising of products, even advising retailers how to display their products and how to price them. They instruct retailers on good merchandising techniques, and encourage them to enhance their image with attractive storefronts, more effectivelyu designed and illuminated interiors, and attention-arresting advertising campaigns.

We also consider that wholesalers help retailers with their buying. Wholesalers keep their customers posted on price changes, new lines of merchandise, and merchandise being discounted. This service is valuable to retailers since it eliminates some of their accounting and clerical costs.

Wholesalers offer assistance to customers in running their businesses. Often, this assistance is not easily available from other sources. Like for example, wholesalers compose accounting forms for use by the retailer, offer product and sales training for customer employees, provide purchasing and inventory maintenance services, assist their customers in computerizing their systems, and establish computer-to-computer systems for access to wholesale and retail prices, stock replenishment, and accounting assistance. Because the astute wholesaler recognizes that his or her business depends on the success of the retailer, the range of assistance offered is wide.

These factors indicate why, even in the face of increasing competition from manufacturers and the growing number of national chains, independent wholesalers have an assures place in business and the resources with which to prosper.

The key resource is their lower cost of purchases; the size of a wholesaler's order entitles it to discounts not extended by manufacturers to retailers. In computing discounts manufacturers also consider the savings in shipping costs resulting from sending a large amount of goods at one time to one place. But this resource is a vulnerable one. Wholesalers can only profit if the addition of their overhead expenses to the cost of merchandise still permits them to charge the retailer a lower price than the retailer could have gotten directly from the manufacturer. The ability to do that depends entirely on meeting customers' needs with high efficiency. Failure to meet such needs efficiently is the leading cause of wholesaler failure.

Price is not the sole factor considered by retailers in choosing suppliers. They also take into account the services wholesalers perform and are inclined to go to and stick with those who help them prosper in their businesses.

As Seen on BBC News, FORBES and CNN Money
See: Dropshipper Wholesale (Platinum Edition) and Turnkey Store Online

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