Trade, Unit 11, BS 2025 PDF

## Trade | Unit 11 | BS 2025 ### Services rendered by the retailers * **To the producer** 1. Introducing new products. 2. Promotion of new products. 3. Providing information on market. * **To the wholesaler** 1. Distribution of goods stored by the wholesaler to the consumer. 2...

## Trade | Unit 11 | BS 2025 ### Services rendered by the retailers * **To the producer** 1. Introducing new products. 2. Promotion of new products. 3. Providing information on market. * **To the wholesaler** 1. Distribution of goods stored by the wholesaler to the consumer. 2. Provide information on the market, consumer taste. 3. Contributing to the promotion of wholesale activities. * **To the consumer** 1. Provision of the required goods in adequate quantities when necessary. 2. Make credit sales. 3. Introducing new products and providing instructions when necessary. 4. Providing various types of goods based on customer requirements. 5. Providing various facilities to the consumer (E.g.: transport facilities, electronic payment methods) ### Intermediaries (Middleman) An intermediary is any person who is in the middle of the process of delivering goods and services from the manufacturer to the customer. **Ex:** Agent, Wholesaler, Retailer **Distribution Channels of Consumer Goods** In order to distribute consumer goods a manufacturer can use a number of distribution channels. 1. Manufacturer (Apple Store) -> Consumer 2. Manufacturer -> Retailer -> Consumer 3. Manufacturer -> Wholeseller -> Retailer -> Consumer 4. Manufacturer -> Agent -> Wholeseller -> Retailer -> Consumer ### Advantages of Intermediaries 1. Products from variety of manufacturers deliver to correct locations on required time. 2. Providing market information. 3. Simplifies the exchange process. 4. Introducing new products. ### Disadvantages of Intermediaries 1. Possibility of unnecessary shortage of essential goods in the market. 2. The possibility of the prices of goods being increased. ### Agent A person who is involved in any activity on the authority of a (principal) is known as an agent. The agent undertakes responsibilities on behalf of his head. He gains a commission for his service. * **Commission agent:** One who purchases or sell on his personal desire on behalf of his master for his head’s benefits and earns a reasonable amount as a commission. * **Broker:** Facilitates a transaction by arranging a meeting between buyer and the seller without maintaining any stock. The broker claims commission from both buyer and seller. * **Factor:** Works in his own name when buying and selling on behalf of his principal. Also has authority to transfer ownership of goods asper the accepted credit terms. * **Del credere agent:** A guarantor of credit extended to the buyer. The Del Credere agent acts as a sales person or broker for the principal, but also guarantees that the buyer will pay for the product or services. * **Auctioneer:** The auctioneer summons a large number of buyers to a specific location, and calls for price bidding from the buyers thereby selling goods to the highest bidder on behalf of his principle. ## **Chapter 01: Classification of Trade** **Definition of Trade?** Exchanging the ownership of goods and services between the buyer and seller for a consideration is trade. **Classification of Trade** **TRADE** * **Home Trade (Domestic/Local trade):** The trade which takes place within a country is local trade. * **Foreign Trade (International/External trade):** Trade which take place between two or more countries is foreign trade. * **Retail Trade** * **Wholesale trade** * **Import trade** * **Export trade** ## **Chapter 02: Retail Trade** **Selling goods and services for final consumption is retail trade.** **Characteristics of Retail Trade** 1. Selling goods and services for the end consumption. 2. Delivering required goods in required quantities to required locations. 3. Delivering variety of goods for sale. 4. Maintaining close relationship with the consumer. 5. Selling on credit basis.