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wholesalers are buying from DISTI or directly from manufacturers it is the so called buying - selling in bulk business their only strategy, its all about buy in large quantities and sell in large quantities, wholesalers usually use a middle man to sell to retailers or they use some dealers or super dealers, they use low pricing strategy in sales with low unorganized profit scheme and sometimes chaotic below cost just to clear inventory, they require low staffing with minimum cost on operation, no need for a proper location (even a basement can work for them) usually wholesalers create a lot of headache between DISTI's and retailers due to their chaotic pricing as they are only traders and they don't have to worry about long term brand image or long term customer relationships.
Retail business first of all rely on the perfect location with perfect look, invest in design and invest in staff, they buy in smaller quantities and sell to end users, their prices are usually higher than wholesalers due to their high operation costs where also they invest in their marketing plan all year long for that they have to follow the calender by seasonality and occasions for promotions and special sales, usually they do not have contacts with manufacturers as they buy from wholesalers or from DISTI's, they buy only chosen products and types, DISTI's rely on them for the brand image, product exposure and they are an important marketing platform & partner for them.
trade and business ethics are the main issue between organizing the commercial dealing between wholesalers and retails as we can always face a pricing conflicts on the same items sometimes example: the DAISYTEK DUBAI issue (you can face even below cost pricing for some important items causing a lot of headache between wholesalers, retailers and consumers).
thats why manufacturers and DISTI's in certain countries should have special codex's to organize pricing levels.
Retailers and Re-sellers are open to value propostions and help with support target marketing campaigns
Wholesalers are more interested in supply chain integration to help streamline cost risks and are more price sensitive ( strongarm buy tactics )
Many wholesalers are too official and having hard stand points, while retailers are very flexible and friendly.
Knowing this, we can act to make both groups pleased.
Getting into the book, it would be too boring...
