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Retail And Wholesale Essay

2005 words - 8 pages

Since the world’s economy has a major impact on the determination of market decisions, it is important for business owners to be informed of every detail to be. In order for them to make an intelligent investment decisions so, in the future they be prepared for any unexpected economical downturns. Also, it is essential to recognize the key risks a business may encounter and build up strategies to diminish them. Furthermore, a large quantity of the markets profit share around the world comes from the retail and wholesale industry. Even though they may fall into the same category in the financial system of the world it does not mean they are made with the same process and purpose. Owners of stores usually start up with retail and look forward in enlarging their business to wholesaling as experience is gained. In order, for business owners to expand their stores from retail to wholesale they are required to understand and be able to access various skills. First, owners must understand the difference between wholesale and retail. Secondly, there are some transitional changes that occur to the business which an entrepreneur must prepare for. Last, there are policies to follow in order not to commit some illegal transactions. By understanding these elements businesses would be more flexible and capable to endure unstable market conditions.
What is retail and wholesale about? Retail are the transactions of products in small quantities straight to consumers most likely not with the idea to resell the item. Wholesale are the transactions of products in large quantities directly to other companies at a whole value marked down price. Retail should recruit employees for their stores that have knowledge and are interested in helping the public in order to succeed and make sales based upon helping the customers. The wholesale business has great advantages of revenue potential. When stores obtain wholesale merchandise that people want, and owners make sure to bargain them at the correct price, and they can make plenty of money.
When entrepreneurs change from having a retail store to a wholesale one, they have to adjust to managing it in a different way and have different perspective. The first change that occurs is the relationship between the customers. Wholesalers have to position themselves into the minds of other companies as they’re the only people selling the best items for a very low price. It is important considering and understanding the target’s needs in order to up sell them more items upon their needs and wants. For instance, wholesalers sell a client what they are looking for, but also the customer may get interested in buying more objects that the wholesale may have in stock. Since the company might be delighted with the great service some other products offered by the owner may sound interesting to the client, they may end up buying it just to try it. Positioning also increases its efforts in strengthening and enhancing its...

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