Question

The owner of supermarket chain Reynold's wants to offer nonfood items such as greeting cards and magazines. However, Reynold's does not want to take care of setting up displays and maintaining inventory records. Which of the following types of wholesalers can help Reynold's meet customer demand while minimizing costsA) producers' cooperativesB) cash and carry wholesalersC) truck wholesalersD) drop shippersE) rack jobbers

Answer 1

E) rack jobbers.

Step-by-step explanation:

Rack jobbers is defined as a company or trader that has an agreement with a seller to display their products in the retail stores and sell them. Usually channels used are not the traditional channels used to sell the products and can include: gas stations, grocery stores.

In such instances the profit realised is split between both parties. For example if Procter and Gamble provide a product rack to a grocery store this is called rack jobbers.

This will be Reynold's best option as he does not want to take care of setting up displays and maintaining inventory records.