What are the features of the commodity exchange as a wholesale commodity market?

What calculations are the main ones in entrepreneurial activity?

The market, as you know, is a meeting place for two main subjects of economic (economic) relations, and therefore it must be attended by either the producer and the consumer, or their representatives. Persons (legal or natural) representing the interests of the producer or consumer (and often acting on their behalf), but who are not such, are called intermediaries.

Entrepreneurial activity in the field of mediation makes it possible to combine the economic interests of the producer and the consumer in the shortest possible time. Mediation from the point of view of the manufacturer increases the degree of efficiency of the latter, since it makes it possible to focus activity only on production, transferring to the intermediary the functions of promoting the goods to the consumer. In addition, the inclusion of an intermediary in the relationship between the producer and the consumer significantly reduces the capital turnover period and increases the profitability of production.

How do intermediaries influence the formation of the price of goods?

When promoting goods from the producer to the consumer, there are:

• manufacturer's wholesale prices;
• wholesale prices of the intermediary;
• retail prices.

Wholesale price - the price of a consignment, set taking into account the discount provided to the buyer for acquiring the consignment as a whole (at the same time, the quantitative expression of the wholesale purchase, i.e. set depending on the type of product).

The manufacturer's wholesale price is set by the manufacturer for the wholesale intermediary (buyer). In this case, both parties interacting in such a transaction proceed from knowledge of the retail price of the goods that are the subject of the transaction.

The wholesale price of an intermediary is the price of a consignment purchased from him by a wholesale (now in relation to him) buyer, taking into account the wholesale (or trade) discount. Such a wholesale buyer is most often a retailer, that is, the intermediary who sells the goods he buys at retail from somewhere. An approximate diagram of the interaction of these three subjects is shown in fig. 2.5. The presented scheme does not mean at all that there should be two intermediaries between the manufacturer and the retail buyer; in reality, a scheme is possible in which one, as well as three or more intermediaries will function. Intermediaries make a profit by accelerating the turnover of their capital.

Rice. 2.5.

Retail price - the price set for a commodity unit by a retailer for retail buyers of such goods (these are prices in stores, kiosks, tents, shopping centers, etc.).

How does price change as a product moves from producer to consumer?

The use of an intermediary is primarily due to the high efficiency of its activities, which is sometimes impossible for a manufacturer of goods to achieve, or he will have to change his profile, that is, become an intermediary. Thanks to the inclusion of an intermediary in the chain of relations "producer - consumer", the wide availability of goods for all (or almost all) consumers is ensured. Another side of this problem is the ability of the intermediary to effectively bring the manufacturer's product to the target markets. From the point of view of the consumer, mediation makes it possible to satisfy his existing needs more fully and much faster through the formation of a more efficient distribution channel.

The distribution channel is the path along which goods move to the consumer (buyer) from the manufacturer. Distribution channels eliminate gaps either in time or between the place of production and the place of consumption, as well as between the ownership of goods and the rights to use them. Distribution channels, as practice shows, will be most effective when they are based not on direct connections, but on the basis of the inclusion of an intermediary.

Why would distribution channels be most efficient based on the inclusion of an intermediary?

Direct links are contractual relations established between the producer of a product (or service) and its direct consumer. Suppose there are three producers of different goods and three consumers of each of them. The distribution channel based on such direct links will include nine contact lines. The intermediary reduces the number of such contact lines that make up the distribution channel to six.

Types of intermediary activities

Entrepreneurial activity in mediation is always carried out in a specific form. The most common form of mediation is agency, that is, a type of relationship in which the agent acts as an intermediary between the producer and the consumer.

Agent - a person acting on behalf of and in the interests of the manufacturer of the goods or the consumer. The person in whose interests and on whose behalf the agent acts is called the principal. The principal can be both the owner of the product, instructing the agent to sell it, and the consumer of the product, instructing the agent to buy this product.

Thus, mediation with the participation of an agent includes the relationship of not two, but three subjects.

There are several types of agents:

• manufacturer's agents;
• authorized sales agents;
• purchasing agents.

Manufacturers' agents represent the interests of two or more producers of goods that complement each other.

Authorized sales agents receive the right to sell all products and represent, as it were, a sales department that is not part of the structure of the manufacturer, but interacts with it on contractual terms.

Purchasing agents are most often involved in the selection of the desired product range (for example, for small retailers).

The legal basis for the implementation of such relations is an agency agreement (agency agreement) concluded between the principal and the agent. Under this contract, the agent undertakes, on behalf of the principal, to sell (or buy) the goods on the terms specified in the contract.

The basis of such an agreement, among others, are two key conditions - the price of the goods and the amount of the agency fee.

In the case when the agent belongs to the category of those selling goods, the price in the contract is indicated by the minimum allowable level. Since the amount of the agency fee is usually set as a percentage of the selling price, the agent seeks to sell the goods at the highest possible price under the given conditions. Thus, there is a coincidence of the economic interests of the principal and the agent.

An entrepreneur must rely precisely on the coincidence of interests if he seeks to find an effective partnership. The pursuit of one-sided profit in entrepreneurship cannot promise prosperity in the future. Entrepreneurship, carried out alone, and not by a team, in modern conditions is not a highly effective form of activity. A team in this case means a community of interrelated partners within a single production cycle. It is the commonwealth, and not the opposition of partners who constantly communicate on issues of production activities, that is more effective than random partnerships, when a new circle of agents is selected for each production cycle. (This provision is not an axiom - in some cases, the search for one-time partners brings the greatest effect.)

What key conditions are specified in the agency agreement?

If agents represent the interests of the principal on a long-term basis, then the intermediary functions of a one-time (for the buyer or seller) agent are performed by a broker - a person whose main task is to bring buyers and sellers together and help them reach an agreement. The broker assumes no risk and is not involved in the transaction.

A broker specializes in certain types of goods or services, acts on behalf of and at the expense of clients, receiving special remuneration from them, and belongs to the category of professional business intermediaries.

What is the main task of a broker as a professional business intermediary?

Sometimes the agent acts as a commission wholesaler who independently disposes of the goods, accepting them for a commission. The commission agent acts on the basis of a commission agreement concluded between the commission agent (agent) and the principal, who in this case acts as a committent.

Commission operations are a kind of trade and intermediary operations performed by one party (commission agent) on behalf of the other party (principal) on its own behalf, but at the expense of the principal. The relations of the parties are regulated by the commission agreement.

Commission agent - an intermediary, an individual or legal entity, who, for a certain remuneration (commission fee), performs transactions in favor and at the expense of the principal, but on his own behalf.

Principal - a person (usually a manufacturer or owner of goods) who instructs another person (commission agent) to conclude a certain transaction or a series of transactions on behalf of the latter, but at the expense of the committent.

What is the benefit of the commission agent and the committent when concluding a transaction?

The amount of the commission agent's remuneration is set as a certain percentage of the transaction amount (usually, when the seller of the goods acts as the principal) or the difference between the price set by the principal and the price at which the commission agent sold the goods (in the case when the seller acts as the principal).

The relationship between the commission agent and the committent, regulated by the commission agreement, may include an obligation that the commission agent gives to the committent. Its content is reduced to a guarantee that the contract concluded by the commission agent with any third party will be executed. Such an obligation (or rather, a guarantee) is called a delcredere and involves the transfer of additional remuneration to the commission agent, it also guarantees the committent protection from losses in the event of the insolvency of the buyer (third party of the relationship).

In international relations, the tactics of one-time commission orders - indents are often used. This is a kind of commission transaction, when the importer of one country instructs the commission agent of another country to purchase a batch of a particular product.

The commission also includes consignment transactions, in which the owner (consignee) transfers the goods to the commission agent (consignee) for sale from the warehouse.

Quite often intermediaries act as merchant wholesalers (in the USA, for example, they account for more than half of the total wholesale turnover).

Merchant wholesalers are independent commercial enterprises that acquire ownership of all goods they deal in. This is a professional type of business activity. Entrepreneurial income is made up of the difference between the wholesale purchase prices and the sale prices of goods. A merchant wholesaler usually sells goods to retailers. Merchant wholesalers operate in various forms:

• wholesale company;
• wholesale distributor;
• supply (trading) house.

What is the benefit of the wholesaler-merchant in the transaction?

Distributor - an intermediary specializing in the acquisition of goods from manufacturers and selling them (distributing) to their regular customers. A distinction is made between distributors of manufactured goods (their partners are entrepreneurs who produce goods ready for consumption) and distributors who sell goods to retailers.

A very common form of intermediary operations is dealership. Dealers include intermediary structures that resell goods on their own behalf and at their own expense. They can be both legal entities and individuals. Dealer profit is formed due to the difference between the purchase prices and the sale prices of goods by the dealer. Under a special agreement with sellers, the dealer can provide them with information about the market, provide advertising services, and also provide after-sales service for the goods sold.

Less often, the dealer's settlements with the principal for the goods received from him are carried out on the basis of special agreements. Relationships in this case are built on the principle: the principal instructs the dealer (usually on a permanent, long-term basis) to sell goods belonging to him (or produced by him) at a certain price. This price is paid by the dealer to the principal if the dealer manages to sell the goods transferred to him.

A trade broker is an intermediary entrepreneur who does not himself participate in the conclusion of a transaction, but only indicates the possibility of concluding it. Usually its functions are reduced to the fact that it only brings partners in the deal. He receives entrepreneurial income in the form of a brokerage fee, the amount of which depends on the amount of the transaction. The broker is also engaged in intermediary activities in the conclusion of trade transactions on the stock exchanges. A broker trades on Russian stock exchanges.

Intermediaries also include jobbers - subjects of the intermediary sphere, which have stocks of finished products, ensure its storage and delivery (transportation). The basic principles of their activities are similar to agency ones. Turning to the services of jobbers is advisable if for some reason it is unprofitable for the manufacturer to create its own distribution network (network of sellers), or if it seeks to go beyond the territory where its own marketing (trade) establishments are located .

A messenger is an intermediary entrepreneur who sells goods by sending product catalogs to potential buyers. In this case, the intermediary must have a warehouse and transport (or the possibility of using it).

A sales representative as an independent entrepreneur also belongs to the category of intermediaries. He can simultaneously represent the interests of several principals.

The services of trade missions are usually used by firms that plan to expand their activities in a certain geographical area or in a new country for them. Such services are necessary in order to feel the attractiveness of their chosen area of ​​future activity. If there is a large volume of trading operations for the goods they produce, then over time, firms refuse the services of intermediaries and themselves establish a structural unit in this area.

A traveling salesman is an intermediary entrepreneur who not only sells, but also delivers goods to the buyer (sale with delivery). Traveling salesmen usually include traveling representatives of trading firms who offer goods to customers by demonstrating samples. Traveling salesmen provide fairly effective advertising for goods and create strong channels for the sale of products, as well as its after-sales service.

The auction form of trade also belongs to the category of intermediary operations. Three subjects of relationships are involved in the implementation of such operations:

1. auctioneer - a person transferring the goods to the auctioneer under the contract for its subsequent sale at the auction in accordance with the terms of the contract and the rules of the auction;
2. auctioneer - a person conducting an auction;
3. auctioneers - potential buyers participating in the auction.

An auction is a public auction. This is a competition among buyers for the right to purchase goods put up for auction. Items put up for auction have a starting price and are usually offered for sale in lots.

Starting price - the starting price set by the auctioneer and the auctioneer in the auction agreement, from which bidding begins during the auction.

Lot - an indivisible lot of goods put up for auction. All lot numbers are usually put up for a preliminary inspection before the start of the auction. The goods (lot) are considered sold after the third blow of the auctioneer's hammer to the auctioneer who offered the highest price. Furs, race horses, spices, tea, tobacco, wool, antiques, and a number of other goods are put up for international auctions.

What is the benefit of the auctioneer and the auctioneer in the transaction?

Exchange entrepreneurship, in comparison with other forms of professional entrepreneurial activity, has a number of specific features, which makes it possible to single it out as a special type and classify it as an independent area of ​​business practice. First, exchanges are intermediary structures. However, they stand out from a number of intermediaries in that almost no entrepreneur can do without contacting them. Secondly, exchanges serve customers - this is their main function. In Russia, this function of the exchanges has a peculiar manifestation - they do not so much serve as control the manufacturer through supply channels and through prices. Today, entrepreneurial activity cannot be carried out at a sufficiently effective level, without taking into account the principles and content of the activities of exchanges.

The exchange is a special organizational form of wholesale trade. Usually, each exchange is characterized by specialization, which is determined either by the geographical region (regional universal exchanges), or by the profile of its activity. Exchanges, the specialization of which is determined by the profile of activity, are divided into the following types:

• a commodity exchange specializes in wholesale trade in usually mass goods with stable and clear quality parameters;
• stock exchange - the center of systematic operations for the purchase and sale of securities;
• currency exchange - a place for carrying out operations for the purchase and sale of gold and currency;
• the labor exchange specializes in taking into account the needs for various types of labor and its offers (purchase and sale of labor services through an intermediary).

When carrying out stock exchange transactions, the main actor is a broker who registers all the wishes of clients about the purchase and sale of shares and determines at what rate the turnover is maximum. This is the rate of cash transactions, or the single rate. The payment to a broker who acts as an intermediary in securities transactions is called courtage. This is a remuneration to a broker for mediating a transaction on the stock exchange.

A commodity futures contract gives the owner the right to buy or sell a certain quantity of a given commodity at a set price in the future (the date is fixed in the contract). The contract represents only the right to buy or sell, but not the ownership of the goods - the subject of the contract. When planning a futures transaction, the entrepreneur proceeds from the fact that if (according to his conclusion) the price of some commodity increases in the future, he will seek to buy a contract, and if the opposite is expected, to sell such a contract.

A futures transaction, also called a futures transaction, that is, a transaction for a certain period, involves only the transfer of the right to purchase and sell a product, but not the ownership of the product. In other words, it does not provide for an obligation to deliver or accept the goods stipulated in the contract. For this reason, a futures contract is sometimes referred to as a paper contract, and a futures transaction as a paper transaction.

A futures contract cannot be canceled or liquidated in the usual sense. The liquidation of such a contract occurs by concluding an opposite transaction for an equal (specified in the contract) quantity of goods or (which happens less frequently) in connection with the delivery of real goods on the terms specified in the contract.

Futures contracts are concluded in connection with the expectation to receive not a real product, but a difference in the price of the product indicated in the contract. The price difference is defined as its excess or decrease between the term of the contract (the price at the time of signing the contract) and the term of its execution (the price at the time of signing the contract with the opposite, reverse condition: if the futures contract is concluded for the purchase, then its liquidation occurs by selling it , and vice versa).

In reality, the subjects of a futures transaction do not enter into relations with each other after signing the contract. They register the futures contracts they have signed with the clearing house established at each exchange. Payments are made through the clearing house.

At present, almost all exchanges have developed and used standardized forms of futures contracts, which facilitates and speeds up the procedure for their conclusion and liquidation. Futures transactions are concluded for speculation on the stock exchange or for insurance against possible changes in the price of goods, i.e. hedging.

Futures transactions must be distinguished from futures transactions for a real product, which the seller does not have at the time of the conclusion, but is expected to appear after a certain time, and then (this is fixed in the contract) the real product will be transferred to the buyer. If partners are not sure of price stability in the period separating the moment of concluding a transaction for a real product from the moment of delivery of the goods, then they can simultaneously conclude a fictitious contract, i.e. a contract that does not involve the delivery of real goods (future contract). The conclusion of a futures contract in such conditions is a form of insurance for partners against the risk of a possible price change. This is important primarily for the buyer (he is dominated by fear that he would not have to pay a higher price). But the seller also agrees to such an action, because it makes it possible for both sides to predict their operations. If it were not possible to conclude, in parallel with the contract for a real product, another, fictitious, i.e. futures, contract, then the partners would be at serious risk. In this case, the following options would be possible:

• the price at the time of delivery of the goods could be higher than the price at the time the contract was entered into. In this situation, the buyer would have to pay a higher (and difficult to predict) price. Turning to a futures contract eliminates such a risk, since if the price is t, then its increase (at the time of delivery of the goods compared to the time of the conclusion of the contract) will be received by the buyer from the clearing house of the exchange;
• the price at the time of delivery could be lower than the price that existed at the time the contract for the supply of the actual goods was concluded. But if, along with this agreement, the seller also concluded a futures contract, then upon liquidation of this futures contract, he will receive a difference in prices from the clearing house of the exchange. And thus, it does not bear the risk associated with price changes.

What is the peculiarity of a futures transaction?

Special forms of entrepreneurial activity include real estate trading (leasing, renting real estate, that is, land, buildings, residential, office and industrial premises), or, as it is also called, real estate business. People involved in this type of business are called realtors, who quite often use intermediaries - brokers. The realtor for the services rendered by him (to the seller, owner or buyer, tenant) receives remuneration in the form of a commission or a fixed amount.

What are the functions of a realtor?

Control questions

• What are the stages of the entrepreneurial process?
• What is an enterprise monitoring system?
• In what sections is it advisable to analyze the potential of the enterprise?
• What is the purpose of a business plan for an enterprise?
• List the list of indicators to assess the strengths and weaknesses of the enterprise.
• What factors determine the formation of new enterprises?
• What are the reasons for the termination of the enterprise?
• What points should be determined in the constituent documents of a legal entity?
• What is meant by the term "legal entity"?
• What are the rights and obligations of a legal entity?
• What tasks are carried out within the framework of marketing?
• List the basic principles of marketing.
• What is business competition?
• What types of competitive advantages of enterprises do you know?
• What is meant by the term "consignment"?
• What is franchising?
• What is the purpose of entrepreneurs entering into franchising agreements?
• What are the features of factoring?
• What is the benefit of the factor when concluding a factoring agreement?
• What is meant by the term "financial leasing"?
• What is the benefit of a leasing company when concluding a leasing agreement?
• List the main types of cooperation between the enterprise and credit institutions.
• List the main responsibilities of an entrepreneur to a credit institution.
• List the main responsibilities of a credit institution to an entrepreneur.
• What is the role of the intermediary in the market?
• What types of prices are distinguished in the promotion of goods from producer to consumer? What is their difference from each other?
• What is the peculiarity of agency as a form of mediation?
• How does the mediation scheme between producer and consumer work?
• What types of intermediary agents do you know?
• What is the peculiarity of the commission transaction?
• What is the scheme of relations in the auction transaction?
• What is the peculiarity of the consignment operation?
• What types of wholesale merchants do you know? What is their difference?
• What is the difference between distributor and dealer?
• What is the peculiarity of stock exchange business?
• What types of exchanges do you know? What is their feature?
• What is special about futures contracts?
• What is the real estate business?

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Similar Documents

Theoretical aspects of entrepreneurship. The essence of entrepreneurship, its goals and objectives. Forms of entrepreneurship. State support for entrepreneurial activity. Analysis of entrepreneurial activity on the example of specific enterprises.

term paper, added 11/28/2008


The concept of entrepreneurship according to Russian legislation, its types. Factors of efficiency of functioning. Types of entrepreneurial and commercial activities, the relationship between them. The essence of the shadow economy. Forms of partnerships in the market.

cheat sheet, added 04/12/2009


Entrepreneurial activity and features of its functioning in modern conditions. Organizational and economic characteristics of LLC "Dobrada". Analysis of the financial condition of the enterprise. Development of small business in the Republic of Belarus.

term paper, added 12/29/2009


The history of the emergence and essence of entrepreneurship, its progressive development. Features of entrepreneurial activity. Characteristics of the main forms of entrepreneurship. Types of entrepreneurial activity, their advantages and disadvantages.

abstract, added 03/04/2010


Essence, goals and objectives of entrepreneurial activity. Implementation mechanism, main indicators and methods for evaluating the effectiveness of entrepreneurial activity. Economic characteristics of the organization of a limited liability company.

thesis, added 07/28/2010


The concept, essence, subjects, types and functions of entrepreneurial activity. Management of entrepreneurial activity in construction. Structure of the Ministry of Economy, structural unit responsible for the development of small and medium-sized businesses.

thesis, added 03/11/2014


The first forms of capital. Entrepreneurial activity. The essence of entrepreneurship. Competitive struggle, risk factor and methods of its measurement. Typology and spheres of entrepreneurial activity. Enterprises, their types. Russian legislation.

thesis, added 10/17/2008

During a crisis or with a decrease in business activity, the most promising direction for building a business is mediation. You can achieve high results with minimal investment. There are a large number of examples of intermediary business, let's consider the most striking of them.

Specificity of intermediary schemes

An intermediary is a person who acts as a link between the seller of goods or services and the person who is interested in purchasing them. By bringing these people together, the intermediary earns a commission. Like any other type of business, brokerage has a number of pros and cons. The benefits include low investments at the start, the ability to quickly reach the payback point and earn income. Among the shortcomings - the risk of failure of the transaction, the refusal of one of the parties to pay for mediation services.

The mediation business is multifaceted. It can successfully develop in everyday life or on the Internet. It is based on the offer of finished products that were released by another company. Each such offer is directed to the client. To negotiate with him, the intermediary can use.

Who can become a mediator? Absolutely any person who has basic knowledge in marketing, management, financing. He must also understand the specifics of the products he plans to sell. The key issue in the implementation of intermediary business is the choice of direction. It is extremely important to focus on a promising and profitable vector, which is primarily of interest to the intermediary itself.

note: all examples of intermediary business have proved that instead of large investments, energy, perseverance, sociability, organization and activity are needed here.

Intermediary Business Examples

It is always difficult to organize any type of business on your own, for example,. It requires capital, hired employees, rental of premises and purchase of commercial or industrial equipment. But there are examples when all organizational aspects can be simplified. These include the intermediary business. Consider the most effective and profitable examples.

babysitter agency

A good nanny is always in short supply in any city and even country. This is an example of an intermediary business in which success depends on the human factor. The legislative base in this direction is practically absent, the market itself can be called "black", while the competition is huge. Money is needed for renting a room (a small office for meeting with clients), recruiting and advertising. When selecting staff, you need to focus not only on education and love for children, but also on the recommendations of other clients, work experience. To do this, you need to conduct a personal interview and testing for a psychological state. A mandatory requirement is the availability of the results of a medical examination.

Event agency

Those who know how to generate creative ideas, give others a good mood, can use the example of opening a holiday organization business.

There are no actors, dancers or musicians on the staff of the event agency. All of them are involved in organizing a specific event. The purpose of the event agency is to offer a creative idea for organizing a holiday and organize the process itself. Focusing on the examples of such agencies, for holding small children's parties, the intermediary takes 10-15% of the total budget spent on the organization, and 3-5% of large corporate events. If you properly organize the intermediary business, another 10% commission can be charged from the artists who were involved.

Delivery service

Until recently, paid delivery services were considered a privilege of the highest class, but in recent years the format of the services provided has changed, prices have become more democratic and affordable. There are many examples of successful intermediary delivery business.

For this option, a small office with a telephone, a minimum set of computer equipment and a vehicle will be enough. Companies with a low budget generally manage delivery using public transport, and organize an office at home.

As a rule, courier services provide standard and express delivery. If an entrepreneur who wants to start an intermediary business has limited financial resources, he can perform the duties of a courier on his own. In smaller companies, their role is often filled by students who work part-time.

cleaning company

The initial investment for opening this intermediary business can be minimal and limited to the cost of purchasing cleaning equipment and cleaning products.

If we analyze examples of the activities of cleaning companies, we can divide them into three types:

1. one-time cleaning of objects (general, after construction, garbage removal);
2. daily service in commercial facilities;
3. narrowly focused companies (for example, dry cleaning of carpets).

In order to engage in this type of service, you can use two methods: open a company for a specific client (make a deal with a shopping or business center) or focus on a specific niche. For example, cleaning apartments or caring for hard floors.

A small firm may present itself to clients as a specialist in a narrow field that provides modern cleaning products, quality equipment and specially trained personnel. At the first stage of work, you can save on opening an office. It is enough to hire a person who will receive calls and send workers to the facility.

Organization of joint purchases

Determining profitable examples of intermediary schemes, one cannot but recall the Internet business. It includes online trading and opening, dropshipping, buying and selling sites, etc.

Organization of joint purchases is beneficial because it does not require investments. All that is needed from the organizer is access to the Internet, a mobile phone and a current account. This business consists in finding wholesale suppliers who sell quality products at reasonable prices, and offering goods to potential customers (as a rule, these are users of social networks or special services). Each of them orders goods, and the organizer forms a minimum order, transferring information to the manufacturer's warehouse. After that, buyers are billed, which must be paid as soon as possible. Then the money is transferred to the wholesale company, and the received goods are delivered to customers in the agreed way. Everyone wins in this scheme: the buyer receives 1-2 units of goods at a wholesale price, the manufacturer receives a new distribution channel, and the intermediary receives a commission from each transaction. In most examples, this is 5-10% of large transactions or 25-30% of the sale of inexpensive goods.

Commercial activities Egorova Elena Nikolaevna

14. Intermediary business

Intermediary activity is to make a profit for the provision of certain services to the consumer, in the role of which entrepreneurs can also act.

As a rule, this is a simplification of purchase and sale operations, information services, etc. An entrepreneur, as an intermediary, faces the following tasks in order to attract clients:

1) determining the deficit, the needs of certain market segments and finding ways to meet them;

2) identification of business areas that need intermediary services of various types.

Intermediaries are individuals or legal entities that can engage in entrepreneurial activities without creating a legal entity, representing the interests of the producer or consumer, acting on their behalf and receiving income from this.

In economic theory, mediation is an operation that takes place between the release of products (provision of services, performance of work) and its delivery to the consumer. In the process of doing business, most entrepreneurs use the services of intermediaries when concluding transactions.

Trading intermediary activity differs from other varieties of this entrepreneurial activity in that it acquires ownership of the goods with which it works. The largest part is retail trade (products are resold to the final consumer) and wholesale (very rarely deals with the final buyer). Wholesalers improve the efficiency of the sales process. A small manufacturer, which has limited financial resources, cannot create and ensure the organization of competent marketing. Good wholesalers - with decent experience in their activities, with a stock of special knowledge and skills - have a large number of business contacts in the retail sector. Wholesalers have a mature customer base that helps the manufacturer reach many small consumer firms at relatively low cost. The buyer, as a rule, receives more guarantees from the wholesaler than from some distant manufacturer. The wholesaler selects the necessary products and forms the necessary product range, thereby relieving the client of significant hassle. With wholesalers, unlike manufacturers, it is possible to agree on a reduction in the size of consignments of goods or their crushing. Wholesalers carry out warehousing of commodity stocks, thereby reducing the corresponding costs of the supplier and consumer, perform faster delivery of goods, being closer to customers than manufacturing enterprises. Wholesalers assist their customers in providing information about competitor activity, new products, price developments and market changes.

From the book Fundamentals of Economics author Borisov Evgeny Filippovich

§ 1 Commercial Entrepreneurship Who is a businessmanA businessman (literally: a business person) can be said, first of all, that he is an entrepreneur. An entrepreneur is a person who takes initiative and takes responsibility for

From the book Commercial Activities author Egorova Elena Nikolaevna

11. Commercial entrepreneurship A characteristic feature of commercial entrepreneurship is close economic ties with wholesalers and retailers, consumers of goods, works, services. Commercial entrepreneurship includes all types of activities that

From the book Commercial Activities: Lecture Notes author Egorova Elena Nikolaevna

12. Financial entrepreneurship The sphere of activity of financial entrepreneurship is the circulation and exchange of values. Financial activity is connected with production and commercial activities, and these relationships are constantly deepening. However, financial

From the book Magic and Culture in Management Science the author Shevtsov Alexey

13. Insurance business

From the book Socialism, Economic Calculation and the Entrepreneurial Function [fragment] author Huerta de Soto Jesus

2. Industrial entrepreneurship Industrial entrepreneurship is one of the leading types of entrepreneurship. Here the production of products, goods, works is carried out, services are provided, certain values ​​are created. Production function

From the book Business Plan 100%. Strategy and tactics of effective business author Abrams Rhonda

3. Commercial entrepreneurship Production is inextricably linked with the entrepreneurship of the sphere of circulation - in order to make a profit, the goods produced must be sold or exchanged for other resources. Therefore, it is trade that is developing at the fastest pace.

From the book Smart Moves. How smart strategy, psychology and risk management drive business success author Olsson Ann-Valery

4. Financial entrepreneurship The sphere of activity of financial entrepreneurship is the circulation and exchange of values. Financial activity is connected with production and commercial activities, and these relationships are constantly deepening. However, financial

From the book More Than You Know. An unusual look at the world of finance author Mauboussin Michael

5. Insurance business

From the book It is human nature to sell. The Surprising Truth About How to Motivate Others to Action by Pink Daniel

6. Intermediary business Intermediary activity is to make a profit for the provision of certain services to the consumer, which may also be entrepreneurs. As a rule, this is a simplification of purchase and sale operations,

From the author's book

4. Individual entrepreneurship Individual entrepreneurship is the simplest form of organization of entrepreneurial activity, which is formed with the help of family and individual property. Individual entrepreneurship

From the author's book

Chapter 2 Entrepreneurship Everyone has heard the expression: Has matured! Or - Finally matured! Or - When will you grow up? We are very, very used to them. We are so used to it that we don’t even notice, let alone think about it. And we use them very superficially,

From the author's book

Chapter II Entrepreneurship Since it is impossible to grasp the concept of socialism without first understanding what the essence of entrepreneurship is, this chapter will be devoted to this concept, as well as the characteristic properties and basic elements

From the author's book

"Entrepreneurship" New businesses are opening today in record numbers. Entrepreneurs are met with much more respect and understanding from the business community than in the recent past. Many Americans hope to someday create their own

From the author's book

Entrepreneurship Entrepreneurship is necessary to start a new game, create new rules, develop an entirely new business model. All recent research highlights the importance of experience and/or positional advantage for both individuals and companies.

From the author's book

Speculation and Entrepreneurship Keynes divides all grounds for calculating expected returns into "actual facts which we can know more or less definitely" and "future events which can only be predicted with more or less certainty." Co.

From the author's book

Entrepreneurship In the territories of firms like Brooklyn Brine, it's easy to find a reason to laugh. The company sells traditional pickles (I'm serious). Located in Brooklyn. And its employees freely use expressions like "lavender asparagus", "garlic stalks" and

The market, as you know, is a meeting place for two main subjects of economic (economic) relations. And if this is so, then either the producer and the consumer themselves, or their representatives, must be present on the market.

Persons (legal or natural) representing the interests of the producer or consumer (and often acting on their behalf), but who are not themselves, are called intermediaries.

Functional purpose of the intermediary

Entrepreneurial activity in the field of mediation makes it possible to combine the economic interests of the producer and the consumer in the shortest possible time. Mediation, from the point of view of the manufacturer, increases the degree of efficiency of the latter, since it makes it possible to focus its activity only on the production itself, transferring to the intermediary the functions of promoting the goods to the consumer. In addition, the inclusion of an intermediary in the relationship between the producer and the consumer significantly reduces the capital turnover period, and therefore increases the profitability of production.

To confirm the last thesis, consider the following scheme (Fig. 2.3).

Rice. 2.3. Temporal periodization of production and promotion of goods to the consumer

Explanations for the scheme:

D - preparatory period. A necessary prerequisite for production is the possession of money capital, which is used to acquire everything that is needed to start production. Suppose that such a period lasts 3 months;

P... - production process. It continues in our case, say, 6 months;

T - implementation process. The product of our activity has already taken a commodity form, it is already a commodity ready for consumption. But we need, say, 3 months to bring the product to the consumer. We spend this time so that the capital, having completed the turnover, returns to its original, i.e., monetary (with growth, of course) form.

If we were able to sell the goods immediately after the end of the production process, then we would reduce the circulation period of capital by 3 months. In this case, however, we sell the goods at a wholesale price, and not at a retail price, that is, we lose part of the possible profit. We could, say, get 90 monetary units, but we get only 81 (10%, i.e. 9 monetary units, - a trade or wholesale discount to an intermediary). However, taking into account that the period of circulation of capital in these new conditions will be not 12, but 9 months, the total profit will also be not 90, but 108 monetary units.

Intermediary and three types of price indicators

With the considered scheme for promoting goods from the manufacturer to the consumer, there are:

• manufacturer's wholesale prices,
• wholesale prices of the intermediary,
• retail prices.

Product distribution channels

The use of an intermediary is explained primarily by the high efficiency of its activity, which is sometimes impossible for the manufacturer of goods to achieve, or simply he will have to change his profile, that is, become an intermediary. Thanks to the inclusion of an intermediary in the chain of producer-consumer relationships, the product is widely available to all (or almost all) consumers. The other side of this problem comes down to the ability of the intermediary to effectively bring the manufacturer's product to the target markets. The intermediary usually offers the manufacturer much more than the manufacturer himself is able to provide. From the point of view of the consumer, mediation makes it possible to satisfy his existing needs more fully and much faster through the formation of a more efficient distribution channel.

Channel distribution - This is the path along which goods move to the consumer (buyer) from the producer. Distribution channels eliminate sufficiently long gaps either in time or between the place of production and the place of consumption, as well as between the ownership of goods and the rights to use them. Distribution channels appear to be most effective when they are based not on direct links, but on the basis of the inclusion of an intermediary.

Direct connections - contractual relationship established between the producer of a product (or service) and its direct consumer.

Suppose there are three producers of different goods and three consumers of each of these goods. The distribution channel based on such direct links will include 9 contact lines (Fig. 2.4).

Rice. 2.4. Scheme of contact lines "producers-consumers" (without including an intermediary)

The inclusion of an intermediary reduces the number of such contact lines that make up the distribution channel to six (Fig. 2.5).