Wholesale Distributor Business Plan

There are several methods of classification that could be applied to wholesalers in general.

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Then they turn around and sell that inventory to others at higher prices.

These resales also generally take place in bulk, so that the retail company can also make a profit on the final purchase.

The businesses that create and produce goods for sale must rely on other businesses to move those goods into the stream of commerce, where the end purchasers can ultimately buy them for personal or business use.

Take the example of a Christmas-tree ornament maker.

Three types of distribution channels are available to a producer of goods.

Each of these channels involves some combination of a manufacturer or producer, the wholesaler, the retailer and the end user.

Thus, the wholesale distribution industry provides the conduit between the makers of goods and the shops who sell them to the end users.

On occasion, that pathway moves from the manufacturer directly to the end user.

The individual purchasers in this scenario are the end users, and they buy directly from the retail establishment.

This method may work well for the ornament maker at this small level of production.

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