Jobber

Jobber Middleman Sale of Goods Wholesaler Retailer Broker Agent Rack Jobbers
A jobber serves as a middleman in the sale of goods by buying products from wholesalers and reselling them to retailers. Unlike brokers or agents who sell on behalf of others, jobbers purchase goods themselves before resale.
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Definition

A jobber is an intermediary in the supply chain who buys products in bulk from a wholesaler and subsequently sells them to a retailer. Jobbers take on the risk and responsibility of purchasing goods themselves and then reselling these items for profit. Unlike brokers or agents, who do not take title of the goods but help facilitate sales on behalf of others, jobbers own the goods during the process of resale.

Examples

  1. Fashion Industry: A jobber might purchase surplus clothing stock from a wholesaler and sell it to smaller retail stores or online marketplaces.
  2. Automotive Parts: In the automotive industry, a jobber may buy parts in large quantities from a manufacturer and distribute them to local repair shops or part stores.
  3. Food and Beverage: A jobber in this industry may buy bulk quantities of beverages from a producer and sell them to convenience stores or small grocery chains.

Frequently Asked Questions (FAQs)

Q1: How is a jobber different from a broker?

  • A jobber purchases goods themselves before reselling them, taking on the financial risk. Conversely, a broker facilitates transactions on behalf of other parties without owning the goods.

Q2: What industries commonly use jobbers?

  • Jobbers are prevalent in various sectors including fashion, automotive, food and beverages, electronics, and more where bulk purchasing and resale can be profitable.

Q3: Do jobbers influence retail pricing?

  • Yes, jobbers can affect retail prices by determining the resale price to retailers, which can influence the final price to consumers.

Q4: Are jobbers responsible for the storage of goods?

  • Yes, once they purchase products from wholesalers, jobbers are typically responsible for the storage and logistics until the goods are sold to retailers.

Q5: Can jobbers work directly with manufacturers?

  • Absolutely. While jobbers often deal with wholesalers, they may also purchase directly from manufacturers to cut out an additional middleman.

  1. Broker: An individual or firm that arranges transactions between a buyer and a seller for a commission without taking ownership of the goods.

  2. Agent: A person who acts on behalf of another party, especially in business dealings, without taking possession of the goods being sold.

  3. Rack Jobber: A vendor who rents space in retail stores to display and sell products directly from their own racks.

Online References

Suggested Books for Further Studies

  1. Distribution Planning and Control: Managing in the Era of Supply Chain Management by David F. Ross
  2. The Supply Chain Revolution: Innovative Sourcing and Logistics for a Fiercely Competitive World by Suman Sarkar
  3. Wholesale 101: A Guide to Product Sourcing for Entrepreneurs and Small Business Owners by Jason Prescott

Fundamentals of Jobber: Business Basics Quiz

### What is a primary responsibility of a jobber in the supply chain? - [x] Purchasing goods from wholesalers and reselling them to retailers. - [ ] Facilitating transactions between manufacturers and consumers. - [ ] Acting on behalf of another to sell goods without taking ownership. - [ ] Manufacturing goods for the consumer market. > **Explanation:** A jobber buys products in bulk from wholesalers and resells them to retailers, taking ownership of the goods during this process. ### How does a jobber differ from an agent? - [ ] A jobber only sells to wholesalers. - [ ] An agent buys goods for personal use. - [x] A jobber purchases goods and resells them, while an agent sells on behalf of another party without owning the goods. - [ ] An agent is responsible for manufacturing. > **Explanation:** Jobbers take ownership of the goods they purchase before reselling them, while agents facilitate sales for others without owning the products. ### In which industry is a jobber NOT commonly used? - [ ] Fashion - [ ] Automotive Parts - [ ] Food and Beverage - [x] Financial Services > **Explanation:** Jobbers are less relevant in financial services where intangible assets and brokerage roles are more prominent. ### What additional responsibility does a jobber have compared to a broker? - [ ] Writing financial reports. - [ ] Designing new products. - [x] Storing and managing goods before resale. - [ ] Auditing financial statements. > **Explanation:** Unlike brokers, jobbers assume responsibilities like storing and managing goods after purchasing them. ### Can a jobber influence retail pricing? - [x] Yes, by determining the resale price to retailers. - [ ] No, only retailers set the prices. - [ ] No, prices are fixed by manufacturers. - [ ] Yes, but only in certain cases. > **Explanation:** Jobbers can influence the retail price through their resale pricing strategies to retailers. ### Why might a retailer choose to buy from a jobber? - [ ] To obtain goods from multiple manufacturers directly. - [x] For the convenience of purchasing smaller quantities and the potential for negotiated prices. - [ ] To reduce product quality variability. - [ ] To bypass wholesalers for faster delivery. > **Explanation:** Retailers often work with jobbers for the convenience and potential cost savings on smaller, versatile orders tailored to their needs. ### Which term is related but distinct from a jobber? - [x] Broker - [ ] Wholesaler - [ ] Manufacturer - [ ] Customer > **Explanation:** A broker performs a different function by facilitating sales without owning goods, unlike jobbers who take ownership. ### What is a key risk a jobber takes on? - [ ] Setting up direct consumer marketing. - [ ] Developing new product lines. - [x] Financial risk from purchasing and reselling goods. - [ ] Patenting proprietary processes. > **Explanation:** Jobbers assume financial risks by purchasing goods upfront with the hope of reselling them at a profit. ### Who might jobbers contrast with regarding the resale process? - [ ] Wholesalers - [ ] Direct consumers - [x] Agents - [ ] Product testers > **Explanation:** Jobbers differ from agents since jobbers own the products they sell, while agents merely facilitate sales. ### Is it common for jobbers to deal directly with consumers? - [ ] Yes, it is their primary role. - [x] No, they typically sell to retailers. - [ ] Yes, especially in the financial sector. - [ ] No, they primarily function as developers. > **Explanation:** Jobbers typically deal with retailers rather than consumers, acting as a bridge between wholesalers and final retail points.

Thank you for diving deep into the vital role of jobbers in the supply chain and challenging yourself with our quiz! Keep pushing the boundaries of your business knowledge!

Wednesday, August 7, 2024
Joint (Tax) Return
Job-Related Injuries
Real Estate Agent January 1, 1
Trading Authorization January 1, 1
Volume Merchandise Allowance January 1, 1
Wholesaler January 1, 1

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