Excerpt from How Some Wholesale Grocers Build Better Retailers

This report sets forth some of the services rendered retailers by successful wholesalers for their mutual benefit. Wholesalers and retailers of groceries recognize that a considerable part of their success depends on each other. The study on which this report is based was made to determine some of the methods which successful wholesalers are using in helping retailers to sell more groceries at lower costs, and to determine the areas and evaluate the need for additional research that will show wholesalers and retailers how they can, by working together, hold down the costs of food distribution. Case studies were made of selected wholesalers, who had annual sales volumes ranging from 5 million to 50 million dollars, and who employed apparently successful methods.

The wholesalers studied performed more than the usual number of services for their retailers. Available evidence indicated that the Operating costs of firms offering a number of services to retailers are not necessarily higher, and the costs may be lower, than those of firms which offer few services.

The services most frequently performed by wholesalers for their retail customers include the furnishing of informational aids, promotional aids, store-engineering assistance, and store-management guidance. All the wholesalers whose operations were studied furnished informational aids to help the retailer in determining proper pricing of his merchandise and in deciding on improvements desirable for the betterment of the retailer's business. The media used in relaying such information to the retailers were order books, sale-en, supervisors, invoices, and bulletins.

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