Financial Transactions of the Wholesale Distributor

by Dr. Don A. Rice, Jay Johnson

Overview

The materials in this text are presented in an effort to enlighten its readers concerning the proper methods to utilize in teaching and understanding percentages, discounts, gross margins, company profits, and other financial transactions of the wholesale distributor.

The concepts included here, though elementary in nature, are essential to the profitability and efficient operations of all wholesale businesses.

The correct procedure to use in calculating percentages is discussed both as a review and as a practical guide for the use of percentages in the wholesale distributorship.

A concept commonly misunderstood by persons unfamiliar with the wholesale distribution of goods is the proper method to use in the calculation of percent margin and percent profit. This is especially true when calculating the margin and selling price from a known cost of goods. The chapter which discusses these subjects should correct these misconceptions and leave the reader with a thorough understanding of how to calculate them and why the method being described is correct.

Another topic discussed in the text is the use of various discounts common to the wholesale business, particularly trade and cash discounts.

This text is not meant to be an exhaustive work on all of the financial transactions of the wholesale distributor but is limited to the basic functions involved in buying and selling goods and services. It is primarily designed for the newly employed. However, more experienced persons may refresh prior learning by quick application of the principles demonstrated.

Product Details

BN ID:	2940162517092
Publisher:	Wage Media, LLC
Publication date:	06/16/2010
Sold by:	Barnes & Noble
Format:	eBook
Sales rank:	360,354
File size:	9 MB

About the Author

Dr. Rice is a noted author, lecturer, and consultant to distributor organizations conducting business in the United States, Canada, and Great Britain. His areas of expertise include: Profitability, Customer Service, The Quality Process for Distributors, Cash Management, Financial Transactions as well as others areas.

He has written nine books on distribution management including: The Distributors Role in the Supply Chain, Challenges Facing Wholesale Distributors, Financial Transactions of the Wholesale Distributor, and The Guidebook to Service Quality. He has authored over 75 trade journal articles, many of which have been published in TED and/or Electrical Wholesaling to mention only two.

In 1990 he was listed first among the Top 20 Most Influential People in the Electrical Industry in America by Electrical Wholesaling.

He has served on numerous Boards of Directors of companies all over North America with sales ranging from 10 million to one billion dollars annually.

He is exceptionally well informed concerning profitability with many successful distributor clients earning 30% annually or more on their net asset investment.

He served two years on the Texas Governor's Council for Quality Texas and is a noted authority in the applications of the Quality Process to distribution.

He was Coordinator of the Industrial Distribution Program at Texas A&M University for over 25 years. Because of his excellence in teaching and his national reputation as an industry leader he has been awarded the title of Professor Emeritus in Industrial Distribution at Texas A&M University.

He enjoys living in south Texas and makes his home in Bryan.

Jay Johnson is currently on the faculty in the Industrial Distribution Program at Texas A&M University.

He researches and consults on issues involving sales, sales management, pricing, negotiations, customer service, incentive systems, and performance metrics. He particularly focuses on the use of leadership to align these with the overall strategy of the firm, achieve excellence, and drive profitability and financial value.

Along with a Bachelor of Science in Industrial Distribution and a Master of Business Administration, Jay has over twenty years experience in the electrical and building materials industry, including sales, sales management, general management, and director. Jay also has experience in the power transmission and fluid power industry.