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
- Fashion Industry: A jobber might purchase surplus clothing stock from a wholesaler and sell it to smaller retail stores or online marketplaces.
- 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.
- 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.
Related Terms
Broker: An individual or firm that arranges transactions between a buyer and a seller for a commission without taking ownership of the goods.
Agent: A person who acts on behalf of another party, especially in business dealings, without taking possession of the goods being sold.
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
- Distribution Planning and Control: Managing in the Era of Supply Chain Management by David F. Ross
- The Supply Chain Revolution: Innovative Sourcing and Logistics for a Fiercely Competitive World by Suman Sarkar
- Wholesale 101: A Guide to Product Sourcing for Entrepreneurs and Small Business Owners by Jason Prescott
Fundamentals of Jobber: Business Basics Quiz
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