The Rack jobber is a manufacturer who displays and sells their own products in a store.
In practice, they offer their products to retailers and at the time of sale to the end customer, share the profit with the store owner.
Typically, the rack jobber is responsible for:
- Directly stocking shelves at points of sale: with all the products needed for selling;
- Applying retail prices: the price that will be paid by the end customer;
- Renewing promotional material: always updating promoted products and advertising them;
The task of retailers, on the other hand, is to provide a commercial space with ample display area.
Types of rack jobbers
The rack jobber refers to one of the four types of wholesalers working in the field of marketing.
The other types that pertain to this sector are:
- Cash and carry: wholesalers operate in large self-service warehouses for retailers where products can be purchased even in small quantities and at lower prices. They buy goods and resell them only to buyers who visit their sales points, who pay in cash, and who take care of transporting their own goods;
- Drop shipper: wholesalers who acquire the ownership rights of products by negotiating their sale without ever actually owning the products themselves. Moreover, they ship the goods directly from the manufacturer to the customer;
- Truck jobber: wholesalers who carry a limited number of products directly to retail outlets.
In conclusion, the rack jobber can draw up an agreement directly with the retailer to display and sell their products in his store.
Some examples of retail outlets might include: gas stations, grocery stores, that is, products of a different economic variety that is not associated with the products sold.
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