Lesson 6 wholesaling

Task 1. Suggest the Russian equivalents for the words with international roots:

nouns: system, channel, agent, commissions, process, distribution, assortment, manufacturer, problem;

adjectives: total, different.

Helpful Words and Expressions

1. wholesaling – оптовая торговля

2. to provide channels – обеспечивать системой (сбыта)

3. indirect channels – опосредованная система (сбыта)

4. complicated channels – сложная система (сбыта)

5. a retailer – розничный торговец

6. a chain movement – движение к объединению

7. a wholesale unit – зд. контора по оптовой торговле

8. total sales – совокупная продажа

9. a middleman – посредник

10. a merchant wholesaler – оптовый скупщик

11. assortment – ассортимент

12. to handle – торговать (амер.)

13. a wholesaling middleman – оптовый посредник

14. to take title to the goods – приобретать товар как собственность

15. an agent middleman – посредник между производителем и покупателем

16. to negotiate purchases or sales – вести переговоры по поводу купли или продажи

17. to earn salary – получать зарплату

18. to receive commissions – получать комиссионные

19. grocery – бакалейная торговля

20. to deal with – иметь дело

21. to deal in – торговать

Task 2. Read and translate the text:

Wholesaling is a part of the marketing system. It provides channels of distribution which help to bring goods to the market. Generally indirect channels are used to market manufactured consumer goods. They could be from the manufacturer to the wholesaler, from the retailer to the consumer or through more complicated channels. A direct channel moves goods from the manufacturer or producer to the consumer.

Wholesaling is often a field of small business, but there is a growing chain movement in the western countries. About a quarter of wholesaling units accounts for one-third of total sales.

Two-thirds of the wholesaling middlemen are merchant wholesalers who take title to the goods they deal in. There are also agent middlemen who negotiate purchases or sales or both. They don't take title to the goods they deal in. These agents don't earn salaries. They receive commissions. This is a percentage of the value of the goods they sell.

Wholesalers simplify the process of distribution. For example, the average supermarket stocks 5.000 items in groceries alone. As a wholesaler handles a large assortment of items from numerous manufacturers he reduces the problem of both manufacturers and retailers. A store-keeper does not have to deal directly with thousands of different people. He usually has a well-stocked store and deals with only a few wholesalers.

Task 3. Match the Russian words and expressions to English ones:

1) потребительские товары; 2) сфера малого бизнеса; 3) торговать чем-либо; 4) около четверти; 5) упрощать; 6) предмет; 7) одна треть.

1) one-third; 2) consumer goods; 3) a field of small business; 4) an item; 5) to deal in; 6) to simplify; 7) about a quarter.

Task 4. Fill in the gaps with the words from the right column.

1 . They use both direct and indirect … of distribution. 1. wholesalers

2. Agent middlemen do not … they deal in. 2. take title to the goods

3. Usually a wholesaling … stands between a 3. a retailer

producer and a retailer.

4. A supermarket may … thousands of items. 4. stock

5. Usually a wholesaler handles a large … of items 5. channels

from numerous manufacturers.

6. Agent middlemen don’t earn salaries, they … . 6. assortment

7. A wholesaler doesn’t deal with the customers, 7. receive commissions

… does.

8. … simplify the problems of manufacturers. 8. middleman

Helpful Words and Expressions

1. sales procedure – процедура торговли

2. a sales representative – торговый представитель

3. to be on commission – получать комиссионные с продажи

4. a (written) quote – (письменное) назначение цены

5. to deliver – доставлять

6. delivery – доставка

7. a gentlemen’s agreement – джентльменское соглашение

8. a verbal agreement – устное соглашение

9. a purchase order – заказ на покупку

10. a stepping stone – средство для достижения цели

Task 5. Translate the following sentences into English.

1. Оптовая торговля – важный элемент рыночной системы.

2. Товары идут от оптового торговца к потребителю через розничного торговца.

3. Они используют опосредованную систему сбыта.

4. Оптовые скупщики приобретают товар.

5. Посредники между производителем и покупателем обычно ведут переговоры по поводу купли или продажи.

6. В этом магазине большой ассортимент товаров.

7. Мы должны заплатить за доставку.

8. Это было джентльменское соглашение.

Task 6. Answer the following questions on the text.

1. What is the aim of the wholesaling?

2. How can you describe a direct channel of distribution?

3. What is an indirect channel of distribution?

4. What channel of distribution is preferable?

5. Is there any difference between a merchant wholesaler and an agent middleman? What is the difference?

6. How does a wholesaler simplify the process of distribution?

Task 7. Discuss with your partner the following problems.

1. Would you like to be on commission?

2. What would you prefer to be: a wholesaler or a retailer? Give your reasons.

3. What is a stepping stone to higher positions in your business?