Most manufacturers that make products that need to be transported will need distributors. Distributors usually transport the goods of various different manufacturers or suppliers from one location to another. They may use trucks, trains, ships, planes, or other modes of transport in order to carry goods between different locations. You can navigate here if you want to hire the best wholesale food distributor in GTA.
They may either make money by charging the manufacturer a fixed fee for the service performed, or they may make a profit by buying the goods from the manufacturer and selling them to the reseller or end-user.
In order to make a profit, the distributor usually buys from the manufacturer at a low price and then sells portions of the goods to a number of buyers at a higher price.
The difference between how much a distributor pays for goods and how much a distributor charges for goods is commonly referred to as the markup. As a result, when distributors are employed, it usually results in adding to the price that the consumer ends up paying.
The markup varies depending on industry, product, demand, competition, and quantity of goods. A distributor may offer different pricing to different customers. A distributor may offer lower pricing to a customer who buys in bulk. Sometimes, a distributor may also be referred to as a wholesale distributor.
Distributors are usually specialized by industry and by location. Depending on the industry covered, they may need specific types of transport facilities. Regardless of size and specialization, the distributor plays a very crucial role in the world of business.
Distributors play an important role in the commodities market. They are the link between the manufacturers, processors and end-users. These entities trade in various perishable and non-perishable items such as meat, seafood, dairy products and vegetables.
Wholesale food distributors perform the following tasks:
1. These entities purchase products in trunk loads and distribute amongst various dealers and large retail consumers. These distributors do not have walk-in customer interaction and therefore need not display their wares as retail outlets do.
2. Distributors need to dispose of their products immediately, especially in the case of perishable items. The shelf life of a product is important. Dairy products can be stored for a longer period than meat and seafood. In either case, refrigeration is an essential requirement. Even delivery vans need to be refrigerated to provide clients with hygienic and fresh products. Seafood needs deep freezing, not just ordinary refrigeration.
Wholesale seafood products can be bought from the following people.
Small seafood wholesalers – These entities generally buy seafood products from local fishermen and sell it to retailers and restaurants.
Large seafood wholesalers – These are entities that buy their sea products from across the world and sell it to large clients or dealers.
Seafood requires deep freezing. Each distributor, whether small or big, makes sure that his/her freezers provide the right temperature. This is an important requirement because seafood is highly perishable.
A delay in deep freezing or failure in maintaining the right temperature can translate into complete rejection; which can put any wholesaler in big financial trouble.
As mentioned above, wholesale seafood distributors purchase commodities from various sources, which include local fishermen or international suppliers.