Agent wholesalers can be classified into two classes as brokers and agents:
1. Broker
Broker helps to have contact between buyer and seller temporarily. Compared to other middlemen, work of broker is limited. Brokers do not involve in financial arrangement or physical ownership. They do not bear any special risk. Their job is to find out buyers and sellers and help them to have exchange agreement. The party taking service pays brokerage-fee to brokers.
Brokers deal in different goods and services. Some deal in foodstuff, some deal in land and houses, some deal in securities (bond, shares), insurance etc.
Food brokers make arrangement to sell foodstuff to retailers, merchant wholesalers, industrial buyers and food processors. Buyers and sellers use food brokers to work according to the changes in the situation of food markets and to take help in grading, to have negotiation, inspection of goods etc.
Real estate brokers help buyers and sellers in buying or selling land and houses. They bring buyers and sellers together, make them negotiate in buying and selling. They do not represent buyer or seller permanently. They involve in advertisement and other promotional activities to increase their activities.
In this class include securities and insurance brokers. Security brokers brings buyers and sellers together selling or buying securities i.e shares, bonds etc. Insurance brokers also help insurance company and customers to come together to buy and sell insurance policies.
2. Agent
Agent is middleman in the channel of distribution, who works as a permanent representative of buyer or seller. Under this include producers' agent, sales agent, commission agent etc.
The sellers appointed by a producer/manufacturer to distribute their products in certain geographical region are called manufacturer's agents.Such agents sell the products in the condition and price fixed by the manufacturer and take fixed commission. The special feature of manufacturer's agent is that they can represent different manufacturers at a time and conduct their business together in the goods of different product lines. But the goods produced by different manufacturers should not be competitive of one another. Manufacturers' agent help producers to expand their market.
Selling agents take responsibility to sell or distribute different products or all products of certain product line of a producer. Sales agents provide different services such as credit facility, delivery facility, storage facility etc. and also involve in promotional activities. But they do not get rights and ownership of goods. Mostly, sales agents are used to sell caned foods, household appliances, clothes, metal goods etc.
Commission merchants do not get ownership of goods, but keep physical control over the goods received from producers. They receive goods from producers and supply to market, sell at good price, and take the fixed commission, pay the rest amount to producers. The commission merchants get authority and price and other sales related terms and conditions. Commission agents make arrangements for delivery of goods and provide transport facility. Such merchants mainly deal in agro-products, sea foods, artistic goods, furniture etc. Their business is seasonal or for short term.
i. Foodstuff Broker
Food brokers make arrangement to sell foodstuff to retailers, merchant wholesalers, industrial buyers and food processors. Buyers and sellers use food brokers to work according to the changes in the situation of food markets and to take help in grading, to have negotiation, inspection of goods etc.
ii. Real Estate Broker
Real estate brokers help buyers and sellers in buying or selling land and houses. They bring buyers and sellers together, make them negotiate in buying and selling. They do not represent buyer or seller permanently. They involve in advertisement and other promotional activities to increase their activities.
iii. Other Brokers
In this class include securities and insurance brokers. Security brokers brings buyers and sellers together selling or buying securities i.e shares, bonds etc. Insurance brokers also help insurance company and customers to come together to buy and sell insurance policies.
2. Agent
Agent is middleman in the channel of distribution, who works as a permanent representative of buyer or seller. Under this include producers' agent, sales agent, commission agent etc.
i. Manufacturer's Agent
The sellers appointed by a producer/manufacturer to distribute their products in certain geographical region are called manufacturer's agents.Such agents sell the products in the condition and price fixed by the manufacturer and take fixed commission. The special feature of manufacturer's agent is that they can represent different manufacturers at a time and conduct their business together in the goods of different product lines. But the goods produced by different manufacturers should not be competitive of one another. Manufacturers' agent help producers to expand their market.
ii. Sales Agent
Selling agents take responsibility to sell or distribute different products or all products of certain product line of a producer. Sales agents provide different services such as credit facility, delivery facility, storage facility etc. and also involve in promotional activities. But they do not get rights and ownership of goods. Mostly, sales agents are used to sell caned foods, household appliances, clothes, metal goods etc.
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iii. Commission Merchants
Commission merchants do not get ownership of goods, but keep physical control over the goods received from producers. They receive goods from producers and supply to market, sell at good price, and take the fixed commission, pay the rest amount to producers. The commission merchants get authority and price and other sales related terms and conditions. Commission agents make arrangements for delivery of goods and provide transport facility. Such merchants mainly deal in agro-products, sea foods, artistic goods, furniture etc. Their business is seasonal or for short term.
