Читать книгу Financial Accounting For Dummies - Maire Loughran - Страница 65

Many small businesses are either service or merchandising entities.

A merchandising company buys goods from a manufacturer that are in turn sold to the merchandiser’s customers. This can be wholesale or retail.

For example, say that you went out to buy a new pair of jeans. The clothing store selling the jeans is a retail merchandiser selling to you —the end user or final customer. Looking at this from another angle, maybe the clothing store purchased those jeans from a wholesaler and not directly from the manufacturer.

The wholesaler is a merchandiser, too, because they didn’t make the jeans. Going through the flow, this purchase from the manufacturer is marked up by the wholesaler for sale to the retail shop who further marked them up for sale to you. Suffering from jeans fatigue at this point? Imagine how that pair of traveling jeans feels!

Wholesalers are the middleman between the retail customer and the manufacturer who fabricates the products. Many smaller retailers buy from manufacturer representatives and not directly from the manufacturer. These reps often make sales calls for different companies offering the same or associated product lines.