The Role of Wholesalers

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3.00

A beauty supply wholesaler had an average inventory of $1,500,000 and the cost of goods sold was $4,500,000. This is the inventory turnover.

$12.50

A wholesaler purchases desk lamps at a price of $10. They set the markup percentage as 25 percent. This is how much the wholesaler should sell the lamps to a retailer.

$0.54

If a wholesaler purchases laundry detergent at $2.00 per bottle and decides to set the markup percentage at 27 percent, this is what the wholesaler's profit will be per bottle.

Shipping costs

NOT an example of inventory carrying cost

Selling products to customers in a store

NOT one of the functions of a wholesaler in the distribution channel

Pull strategy

Rebecca needs to sell her store's remaining stock of coats and gloves, so she holds a one-day blowout sale and tells customers to "get it before it is gone." Rebecca is using this type of strategy.

$15.47

Sam wants the markup percentage on the shirts he is selling to be 19 percent. If the shirts cost Sam $13 each, this is how much he should charge customers for each shirt.

Inventory carrying costs

The cost of maintaining inventory in a company's warehouse are referred to as this

True

True or False: Cross-docking is the re-routing of inventory through a warehouse.

False

True or False: Direct marketing channels use intermediaries such as wholesalers and retailers.

True

True or False: The four main parties in a distribution channel are manufacturers, wholesalers, retailers and consumers.

False

True or False: The matching phase consists of conducting market research to find potential customers.

Reaching an agreement with retailers on the price of products

best describes negotiation

Intermediaries between manufacturers and retailers

best describes wholesalers

A third party acting as a middleman connecting people and things

describes intermediary

When products need to be stored in the warehouse for a long time

situation where the cross-docking technique should NOT be used

Push strategy

strategy that is used by companies to convince retailers to promote their product over competitor's products

Pull strategy

strategy that tries to create an increased demand by making customers feel like they only have a short time to purchase the products

There is no "ideal" number applying to all companies

the "ideal" inventory turnover number

Cost of goods sold ÷ average inventory

the formula used to calculate inventory turnover


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