The movement of convenience store products in large amounts is referred to as wholesale distribution. Wholesale distributors carry out delivery to small-scale distributors. Convenience store wholesale distributors act as connecting links ensuring that manufactured products are moved from the producers to the retail traders, they do not deliver products directly to the final consumer.
Generally, wholesale distributors are in three forms.
- Some distributors focus on storing and distributing the same class products from different manufacturers
- Others focus on being the only distributor for a particular manufacturer.
- The final group is those who carry out the distribution of different various convenience store products from different manufacturers.
Regardless of the form of wholesale distribution the goal remains ensuring that manufactured products get to the right population of retail traders or small-scale distributors at the expected time without delay.
As a manufacturer, working with the right wholesale distributor offers you some benefits as regards promoting and marketing your product at a great cost. Some of these benefits include:
1. Explicit and recognized customer relationship: A major advantage of working with wholesale distributors is the fact that most distributors already have a pre-existing relationship with customers and have earned the trust and loyalty of these customers. These distributors become great channels for transporting products.
2. Marketing competence: Success in distribution goes alongside efficient marketing. Partnering with an experienced and knowledgeable distributor helps to promote sales, increase profit, and reduce marketing costs. Wholesale distributors also aid in securing new retailers to increase sales.
3. Efficient storage: Distribution companies have warehouse facilities for stocking a variety of products. Wholesale distributors assist producers in storing their products and keeping them fresh, thereby reducing manufacturers’ storage costs.
4. Speedy delivery and larger distribution channel: Distribution companies have sufficient transport facilities. These make the movement of products from the manufacturer to retailer easier and faster. Also, as a result of their larger distribution channels, products reach a larger range of retailers promptly.
One major challenge of wholesale distribution companies is the need to ensure that a great number of products are properly stored, kept fresh and free from damage-causing elements, which may sometime pose great problems in situations where the required technology is lacking. Some large retailers have also resulted in buying directly from manufacturers leading to a reduction in businesses for wholesale distributors.
Some notable wholesale distributors in the United States of America are McLane Co Incorporated, GSC Enterprises Incorporated, Eby-Brown Company, Harold Levinson Associates Incorporated, Imperial/Harrison Supe, and Farner-Bocken Company.