Some people might say that retail selling is more important to a business than organizational selling, but this is not the case. Retail selling is only one small part of an organization's revenue and it can't produce any profit on its own. If you want to have a successful business, then you need someone who can organize how your inventory will be sold so that workers are being efficient at their tasks.
Retailer selling and Organizational selling are two types of sales that have been carried out since the beginning of time. The first is a consumer-to-consumer exchange, where consumers can buy or sell goods to each other. This has been traditionally done at a store or a flea market.
Let’s see how retail selling is different from organizational selling. The former one traditionally involves an individual going to a store and buying goods from a retailer, such as what would happen at Walmart, Target, CVS Pharmacy, etc., which is nothing more than an extended version of the same thing.
In contrast, Organizational selling happens when one business sells its products or services to another business. If an individual wants to buy from one company but also wants to sell their own product/s to customers who may shop at that other company, then that person may contact the company and ask to be able to sell their goods or services there.
Retailer selling is typically done by an individual buying and reselling products. This includes activities such as:
For example, If someone wants food for a dinner party they will go to the grocery store and buy what they need for their dinner. They can distribute this amongst themselves by preparing it themselves (i.e., cooking), giving all of the prepared food to one person who will cook it (i.e., potluck), or hiring someone else to prepare it (chef).
However, in terms of re-selling these goods, if that person cooks some of the food and re-sells it they would be engaging in direct retailer selling.
There are two types of Organizational selling: Internal Organizational selling and External Organizational selling.
Internal organizational selling is when an organization sells its products/services to people within that company. Externally, an organization can either sell their products/services to another company or sell their products/services directly to the customers as a different business type such as a convenience store or restaurant.
For example, Walmart buys from suppliers and sells those goods to consumers at a profit margin which is why we often hear about them causing local grocery stores to go out of business. However, not all companies buy and sell directly like this. Some companies buy and resell goods as a retailer such as CVS, etc.
Organizational selling is typically done by an individual or company buying and reselling products. This includes activities such as:
• A drug store, such as CVS pharmacy, that buys prescription drugs from manufacturers and re-sells them to customers at a profit margin
• A restaurant buys food and other supplies (e.g., cutlery), prepares it, and then sells it to customers
• An accounting firm may provide tax preparation services for individuals and sell those services to the same client year after year
For example, If someone wants food for a dinner party they will go to the grocery store and buy what they need for their dinner. They can distribute this amongst themselves by cooking it themselves (i.e., potluck), having someone else cook the food for them (chef), or hiring a caterer to prepare the food. Caterers are similar to external retailers because they buy ingredients and resell them as homemade meals at a profit margin.
It is important to note that not only do retailers sell products, but companies also engage in Organizational selling since they are selling their services rather than goods, which is why it is often called "Service Selling." Hence, this is how retail selling is different from organizational selling.
When someone buys products in bulk that means that they purchased more of one product at once than what they would normally purchase. For example, if an individual usually buys one grapefruit at a time, but then decides to buy 4 grapefruits in bulk that means that they bought four times the amount of grapefruit than what they usually buy.
When it comes to buying products in bulk there are two options: retail and wholesale. Wholesale is when you buy directly from the manufacturer while retail is when you buy it from another business like a retailer or caterer.
There are five options when it comes to buying in bulk:
A private label is when a product is not labeled with the company's name but has its own brand name. For example, Pringles is a type of potato chip that can be purchased in. They are known for their original flavor and they only come in the Pringles container.
The biggest difference between private label and branding is that when you purchase branded goods you know who makes the product whereas with private label products you do not know who makes them because there is no logo or company name. This example might have helped you know how retail selling is different from organizational selling?
The brand name is when you purchase a product from a well-known company such as Colgate toothpaste, Tide laundry detergent, etc. In the drug store, there are multiple types of these products to choose from depending on what you need for your specific situation. For example, if someone bought face wash at Walmart they would have a variety of different brands to choose from that fulfill their needs.
A generic Product is when the product has its own brand name but does not claim to be "better" than any other similar product (i.e., generic names). For example, batteries are usually generically labeled with their own brand name because they do not want people to think that another battery brand will last longer or work better than theirs.
Multi-Pack Deal is when you purchase more than one of the same products at a discounted price. For example, if someone bought two packages of soup, saved money on every additional package that they purchased, and then shipped them together. There are different benefits to buying products in bulk depending on whether or not it is profitable for the buyer.
Bulk Deal/Price Reduction is when items are sold at a reduced price because they are being sold in large amounts (e.g., store closing sale). This means that you can buy as much as you want but there will be no discounts which means that it might not always be cost-efficient to buy items in bulk depending on how much your specific situation calls for.
Buying products in bulk can lead to cost savings when on sale but if buying things in bulk is not cost-efficient then it would be better off to only buy what one actually needs.
Buying products in bulk can also help individuals and companies save time and transportation costs because it allows someone to pick up everything needed for their household/company at once instead of making multiple trips back and forth. Some items are also cheaper per unit when bought in large quantities so this could potentially save someone even more money depending on how much they personally use each item that is being purchased in bulk.
When it comes to making a choice on whether or not to buy in bulk there are four options:
No is when you will never pay for anything in bulk no matter what the circumstance. For example, if someone has a family of two and they only eat cereal once every few weeks they will most likely never buy it in bulk because they do not have enough members of their household that eat cereal to warrant buying more than one bag at a time.
Yes/Maybe is when you may or may not purchase items in bulk depending on how much it costs and what your needs are. For example, if an individual always buys toilet paper in bulk when they are on sale because it is much cheaper than buying one roll at a time.
Product-specific is when you purchase items in bulk depending on the product. For example, toothpaste can only be purchased in bulk because you have to use so much of it each time that it would not be cost-effective if you did not buy more than one tube at a time.
Not applicable is when there are no circumstances when you would purchase an item in bulk and therefore times, where people might buy products in bulk, do not apply. One example could be if someone never buys laundry detergent because their household consists of two people and therefore the costs do not outweigh the benefits of buying this product in large quantities.
Organizational selling allows an individual or company to choose how many products/services they want to purchase; however, depending on their location this choice may be limited since some locations only carry certain products/services due to the variety of manufacturers available which inhibit someone's ability to choose.
For example, a drug store will usually only have one type of toothpaste on the shelves but if someone goes to a grocery store they will find many different brands and flavors of toothpaste. The aforementioned paragraphs explain how retail selling is different from organizational selling!
Organizational selling is when a company will only sell the amount of product that they have in stock. This means that if someone goes to purchase something in bulk and their location does not have enough to fill the order then the sale will not go through.
Retailer selling allows an individual or company to choose how many products/services they want to purchase; however, depending on their location there are many different brands for each product fulfilling their needs.
For example, a drug store has a variety of different kinds of toothpaste for different people because everyone's teeth are unique and therefore require different things in order for them to stay healthy so why should someone buy one type of toothpaste for all members of their household?
This would be like trying to fit a square peg in a round hole; however, with retailers selling you can purchase all types of toothpaste, and the buyer will not be forced to buy more than they need.
Retailers use their marketing strategy to inform customers what products are available at their location making it easy for customers to make an informed decision about which product/service is right for them.
Organizations typically do not market themselves to consumers since they are often re-selling goods that other people have made or services that other people created, so individuals rely on word of mouth from friends and family instead.
For example, CVS Pharmacy has expanded its product line by offering more personal care items such as hair color, skincare, and perfumes. They have also started selling medical supplies such as flu shots and first aid kits, and grocery items like cheese and wine.
1. Showing a variety of products- When a customer is able to see what your store has to offer they are more likely to be interested in the product that you have available rather than going somewhere else where they can find something similar or better quality for a lower price.
2. Location- It plays an important role in sales because people tend to go towards familiar brands and stores as opposed to new destinations, so even if it is landlocked having a known location will attract more customers due to the reputation of being a good place for shopping.
3. Inventory- Never underestimate how many products you need, whether you order online or wait until each item is sold before restocking, this will ensure that your store always has enough product so each customer can purchase what they came for.
4. Customer service- If the customer feels that their needs and concerns are being met then they will be more likely to come back and recommend you to their friends and family, but if they feel ignored or treated poorly then this is a surefire way to lose business.
5. Price- Stay competitive with other stores in your area, even if they have a lack of inventory keep an eye on the market trend because shoppers will go where it is cheapest, as long as there is still a wide variety of items available for purchase.
Direct retailer selling allows an individual or company to choose how many products/services they want to purchase; however, depending on their location there are many different brands for each product fulfilling their needs.
For example, a drug store has a variety of different kinds of toothpaste for different people because everyone's teeth are unique and therefore require different things in order for them to stay healthy so why should someone buy one type of toothpaste for all members of their household? This would be like trying to fit a square peg in a round hole; however, with retailers selling, you can purchase all types of toothpaste and the buyer will not be forced to buy more than they need.
1. Have a good manager- It doesn't matter how many sales you make if no one is there to manage your staff and remind them how important they are, so make sure the managers in charge know what it takes to work with people and can provide support when needed.
2. Sell off-season items- Try making deals with vendors for buying their overstock at lower prices allowing you to offer these 'loss leaders' at an affordable price for customers who may not be able to purchase regularly due to location or busy lifestyles.
3. Be original- Customers will always appreciate something that is unique when compared to other options on the market, so try looking into niche markets such as gourmet food or specialty items that people purchase regularly, but may not know where to find locally.
4. Promotions- Whether it is a location-based promotion such as a ‘buy one get one free’ deal or a social media exclusive discount be sure to notify your customers via mass media outlets before the sale is over.
5. Customer retention- It's much cheaper to retain existing customers rather than constantly having to attract new ones so use this opportunity to build relationships with your clientele so they will want to come back multiple times throughout the year for different products and services as opposed to going somewhere else where they can receive more value for their money.
Direct retailer selling differs from organizational selling because during the latter type of selling the organization chooses how many products they need rather than letting customers purchase items in bulk while also receiving special deals and promotions, but this type of selling is limited to organizational outlets due to having direct access to suppliers.
Buying in bulk allows people to choose different quantities depending on their needs so that everyone is satisfied with the product, but not only that it's cheaper for the buyer when they buy in bulk because then they can receive discounted rates or even free promotional items.
For example, if you are buying food for your family it becomes more cost-effective to buy in larger quantities instead of purchasing small portions monthly which will accumulate into quite a bit over time; however, most organizations do not offer choice when it comes to purchasing merchandise.
