Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

13. Retailers, Wholesalers
    and Their Strategy
    Planning

Text © The McGraw−Hill

Companies, 2002

Exhibit 13-6 shows that over 80 percent of the wholesaling establishments in the

United States are merchant wholesalers—and they handle over 57 percent of

wholesale sales. Merchant wholesalers are even more common in other countries.

Japan is an extreme example. In its unusual multitiered distribution system, prod-

ucts are often bought and sold by a series of merchant wholesalers on their way to

the business user or retailer.^31

Service wholesalersare merchant wholesalers who provide all the wholesaling

functions. Within this basic group are three types: (1) general merchandise, (2) sin-

gle-line, and (3) specialty.

General merchandise wholesalersare service wholesalers who carry a wide vari-

ety of nonperishable items such as hardware, electrical supplies, plumbing supplies,

furniture, drugs, cosmetics, and automobile equipment. With their broad line of

convenience and shopping products, they serve hardware stores, drugstores, and

small department stores. Mill supply housesoperate in a similar way, but they carry

a broad variety of accessories and supplies to serve the needs of manufacturers.

Single-line (or general-line) wholesalersare service wholesalers who carry a

narrower line of merchandise than general merchandise wholesalers. For example,

they might carry only food, apparel, or certain types of industrial tools or supplies.

In consumer products, they serve the single- and limited-line stores. In business

products, they cover a wider geographic area and offer more specialized service.

Specialty wholesalersare service wholesalers who carry a very narrow range of

products and offer more information and service than other service wholesalers. A

consumer products specialty wholesaler might carry only health foods or oriental

foods instead of a full line of groceries. Some limited-line and specialty wholesalers

are growing by helping independent retailer-customers find better ways to compete

380 Chapter 13

Service wholesalers
provide all the
functions

Merchant wholesalers in Africa
are often smaller, carry narrower
product lines, and deal with
fewer customers than their
counterparts in North America.

Internet

Internet Exercise Check out the different aspects of the Fastenal website

(www.fastenal.com). Give examples of ways that the website is intended to

help Fastenal’s customers and suppliers.

its customers. If you think all merchant wholesalers are fading away, Fastenal is proof

that they can serve a needed role. In the last decade Fastenal’s profits have grown at

about the same pace as Microsoft’s.