Difference between retailer and wholesaler

01. Different methods of selling tin boxes

Tin box retail is a transaction activity in which operators or producers sell tin boxes to individual consumers or consumers of social groups. The characteristics are: the number of transactions in each tin box is relatively small, and the number of transactions is frequent; the tin box sold is consumer data, and individuals or social groups buy it for daily consumption; after the transaction, the tin box leaves the circulation field and enters the consumer field .

Tin box wholesale is an indispensable link in circulation. There are usually two situations:

①The tin box manufacturer sells the tin box in bulk to other commercial enterprises for sale.

②Commercial enterprises supply the production materials used for reprocessing to production enterprises.

The difference between the two

(1) The service objects of the two are different. Tin box wholesalers serve resellers and producers; tin box retailers serve end consumers (individuals or collectives).

(2) The position in the circulation process is different. Tin box wholesalers are at the beginning and intermediate link of the circulation process. When the wholesale transaction ends, the commodity circulation is not over; the tin box retailers are at the end of the circulation process, and when the tin box is sold, they leave the circulation field and enter the consumer field.

(3) The number and frequency of trading tin boxes are different. Tin box wholesalers are trading activities for resale and processing. Therefore, tin box wholesale transactions are large in volume and low in transaction frequency, which is a capital-intensive industry; while tin box retail is generally sporadic transactions and high in frequency.

(4) The setting and layout of business outlets are different.

02. Tin box sales volume and price, and profit margins are different.

Simply put, the essential difference between tin box retail and tin box wholesale is the volume of transactions. Of course, it can also be said to be the difference between slow and fast. Wholesale has accelerated the speed of tin box sales. The opposite is true for retail tin boxes. Retail sales will slow down the sales of tin boxes. It is likely to cause a backlog of tin boxes and even oversupply. Merchants try their best to dispose of the goods.

The operation of tin box wholesalers is very simple, it seems that there is no process. It’s just a simple purchase of goods, large quantities of goods, large wholesale goods, lack of management, and lack of control. Generally speaking, wholesalers are basically enterprises.

Tin box retailers are at the end of the tin box circulation and are the middlemen between tin box products and consumers. The main task of the retailer is to directly provide services to the final consumer. Moreover, he is the associate who connects the production enterprises, wholesalers and consumers, and plays a very important role in the entire distribution channel.

①Different profit rates

There is a big difference in profit between tin box wholesalers and tin box retailers. Wholesalers sell a single tin box product at a low price and make profits through accumulation of quantity. The retailer’s price of a single tin box is higher, and it makes a profit through a single tin box price rebate, but the wholesaler is more advantageous in terms of profit.

In summary, the essence of tin box retail and tin box wholesale is very simple, but there is one point that should be paid attention to. Although the essence of retail and wholesale is distinct, wholesale and retail also have an inseparable relationship, which can also be said to be a relationship between upper and lower. For example, tin box wholesalers can retail tin boxes to small physical stores, but there may be no price. A lot of wholesale is low, and then physical stores can complete final consumption with consumers through retail.

03. The essential difference between tin box retail and tin box wholesale is that the target audience is different: the target audience of retail is consumers, and the target audience of wholesale is channel dealers!

1. Tin box retailers pay attention to consumer experience in consumer marketing, requiring services or tin box products to be integrated into consumers’ lives to create consumer stickiness; while wholesalers need to create a perfect profit chain for channels.

2. Retailers pay attention to service in marketing, because consumers talk about comfort, and obvious marketing traces will make consumers disgusted; wholesalers pay attention to credit in marketing, because channels are profit-seeking and money is not hurting feelings, and money is clearly stated. It is easier to increase sales channels.

In short, tin box retail and tin box wholesale are two completely different operations. Don’t learn from each other. When retailers start to sell small profits but sell quickly or wholesalers pursue high price differences, it means that the boundaries of the two completely different fields are broken. There is no second way except to go to destruction!

04. Maybe what I said is inaccurate. In my opinion, the biggest difference between wholesale and retail is: scale efficiency, through scale to reduce costs and expand benefits.

The biggest difference between tin box wholesale and tin box retail is that the profit of tin box wholesalers selling a single tin box is low, and only a large number of shipments can make money, while the retailer selling a single tin box has a high profit, but the shipment volume is higher. There are few wholesalers. In many cases, the cost of producing a single thing is much higher than the cost of mass production. Therefore, the economic efficiency will be low, and their trading partners are also different. Wholesale refers to commercial activities that specialize in the trading of bulk commodities. It is an indispensable link in commodity circulation. There are usually two situations: commercial enterprises sell goods in bulk to other commercial enterprises for resale; commercial enterprises supply the production materials used for reprocessing to production enterprises. Retail: A transaction in which a commodity operator or producer sells commodities to individual consumers or consumers of social groups.