Takeaway Wholesaling companies E S P > Logistics> Level A1.

1 Starter

Instructor: Date:

Learner: Regional Branch:

Program: Center:

CONTENT
• Let’s Start! • Let’s Explore! • Let’s Practice! • Extension Activity• Target
• Learning Points
Words

Let’s Start!

Here You Can Find Everything You Want!

Learning Outcome:
Can Do Statements:
Exchange information on instructions
• I can talk about wholesaling.
about basic activities and safety at work.
Describe different types of companies in I can understand what wholesaling
a simple way. companies do.
I can understand the difference
between distribute and transform.
Ask your partner:

• How do you think big companies

distribute their own products?
Do you buy products from catalogues?
Why, or why not? Talk about your
experience.

1
 Let’s Explore!

Distributing products in the most effective way, retailers* buy from wholesalers!
* A business that sells goods directly to the consumers is a “retailer”.

Instructions: Read the text below.

When companies reach the point of making a lot of goods, they need to find a method to
distribute them. Wholesaling appears to be a solution to this problem. They can sell new
or used goods to retail organizations and minor stores.

Sometimes, big companies can't build factories near customers, so they need to hire
intermediaries, also called distribution channels. These are the wholesaling companies
that gather all the products and organize, group, classify, and repack them when
necessary. They offer them to resellers at a low price, but never directly to
customers.

As a consequence, wholesaling companies make a big effort not only to distribute

products, but also store them by grouping them into blocks. Wholesalers classify
merchandise according to the nature of the product because they have to distribute them
to industrial, commercial, and professional users, or independent agents. Then, they
offer these products to final consumers at a higher price in order to make a profit.

Wholesalers don’t transform any of the goods they are in charge of, they only
distribute them. They don’t do any further manufacturing process in the products as
these are ready for distribution and sale. Wholesalers supply retailers.

Additionally, wholesaling companies can target the final consumer through direct
selling. They offer the products online or distribute catalogues that present a variety of
products and discounts. During this process, independent wholesale agent companies
can offer standard products at lower prices and negotiate the selling price.

Bear in mind, wholesalers can manage large amounts of products. They divide similar
products into sections for distribution to retailers.
 Let’s Practice!

Wholesaling is an incredible solution for distribution difficulties.

Instructions: Read the sentences. Write the missing word(s) in the blank.
Use: sell / has / is /

1. Wholesaling a solution for problems in the distribution process.

2. Wholesaling companies both new and used products.
3. A wholesaling company a lot of products.

Let’s Practice!

Recognizing what the differences between distribution and transformation are.

Instructions: Select the correct answer.
1. Wholesaling companies
4. Wholesaling companies sell products to
a. distribute products to retailers.
external agents at
b. are the manufacturers of
a. a more expensive price.
products.
b. a lower price.
c. don’t belong to the distribution
c. 50% of discount.
channel.
d. the very same price.
d. don’t sell to retailers.
e.
5. After a company manufactures the
2. When a wholesaling company
products,
distributes directly to consumers,
a. the wholesalers distribute them.
a. they offer their products through
b. the retailers distribute them.
catalogues.
c. the customers distribute them.
b. they group their goods by their
d. the buyers distribute them.
nationality.
c. they don’t increase the price of
6. Wholesalers classify merchandise
products.
a. according to the discounts.
d. they spend a lot of money in
b. according to the nature of the
advertisement.
product.
3. Wholesaling companies don’t c. according the distributors.
d. according to the professionals.
manufacture products because
a. they help retailers save money.
b. they increment the sales.
c. they sell products at lower prices.
d. they only distribute them.
 Extension Activity

Make a chart about wholesaling companies in Colombia.

Instructions: Complete the following steps. Fill in the Self-Assessment.

a) Look for information on some

wholesaling companies in Colombia. Self-Assessment YesNo

b) Describe what kinds of products

they trade. I look for information on wholesaling companies.
I describe what kinds of products they sell.
c) Write how those I recognize how a wholesaling company distributes a product.
companies distribute their
products.

d) Compare your chart with a

partner’s and establish their
similarities and differences.

Target Words

• retail organization (noun): a

• block (noun): in wholesaling, it is one
business that acquires products from
of a set integrated items.
wholesaling and sells products directly
to customers (drugstores, e.g. As a consequence, wholesaling
supermarkets and department stores). companies make a big effort not only to
distribute products, but also store them
e.g. They can sell new or used goods
by grouping them into blocks.
to retail organizations and minor
stores. • discount (noun): a price reduction, a
bargain.
• wholesale (adjective): referring to
the sale of a huge amount of products. e.g. They offer the products online or
through distributing catalogues that
e.g. During this process, independent
present a variety of products and
wholesale agent companies can offer
discounts.
standard products at lower prices, and
negotiate the selling price.
• reseller (noun): a person or entity
that buys a product for selling it at a
higher price.
e.g. They offer them to resellers at a
low price, but never directly to
customers.
 Learning Points

Can to Talk About Ability in Affirmative Form

You use the verb can to talk about the ability someone or something has to do
certain activity.

You express someone’s abilities when you use the modal verb
can. Examples:
Factories can make lots of goods in one day.
Agents can sell more than four hundred products in a week.

Remember the structure to use the modal verb can, every time you want to talk
about the particular skills of a person or institution:

The verb can is used after the subject and before the main verb
Subject + modal verb can + main verb (base form) + complement
Example:
Avon can offer good prices to the end customer.
Examples
• They can sell new or used goods to retail organizations and minor stores.
• Wholesaling companies can target the final consumer through direct selling.
• Independent wholesale agent companies can offer standard products at lower
prices and negotiate the selling price.

Direct Selling Companies in Colombia.

There are some companies that distribute their products using direct selling, giving
personal demonstrations to consumers, initially by door-to-door sales.

In Colombia, there are some companies that operate through direct selling
methods where sales representatives go to the prospect’s house or workplace.
Let’s have a look at some of them:
Companies that operate like this in Colombia often use mail-order catalogues. Let’s
see some of them:

• Avon Colombia Ltda: Distributes and sells cosmetics, personal care products,
clothing and toys. Operating on the market since 1886.

• Herbalife: Distributes and offers health care and naturistic products such as
nutritional supplements, weight management products, sports nutrition and
personal-care products. Operating on the market since 1980.
 Learning Points

• Yanbal de Colombia SA: Cosmetic products such as lipstick, mascara,

fragrances and products for kids. Operating on the market since 1967.

• Belcorp: Sells goods for personal and family use, it integrates different
catalogues for specific market segments. For example, Lebel, Esika and
Cyzone. Operating on the market since 1968.

• Amway: Sells health and beauty products, such as dietary supplements, home
and personal care products. Operating on the market since 1959.

• Novaventa: Commercialized products from manufacturing companies such as

Colcafe, Zenu, Nacional de Chocolates and it is part of Nutresa Group. Also
distributes products to snack machines. Operating on the market since 2000.

• Leonisa: Manufactures underclothing and distributes products through

catalogues. Operating via direct selling system since 1993.

• Carmel: Designs, produces and commercializes products, men’s and women’s

clothing and shoes through direct selling. Operating on the market since 1997.

• Cristian Lay: Distributes jewelry, watches, fashion accessories and

cosmetic products in general. Operating on the market since 1981.