Definition
In retailing, a middleman is a business concern that specializes in performing operations or rendering services directly involved in the purchase and/or sale of goods in the process of their flow from producer to consumer.
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In channels of distribution, a middleman is an independent business concern that operates as a link between producers and ultimate consumers or industrial users. There are at least two levels of middlemen: wholesalers and retailers.
A broker is a middleman who serves as a go-between for the buyer or seller. The broker assumes no title risks, does not usually have physical custody of goods, and is not looked upon as a permanent representative of either the buyer or seller.
A jobber is a middleman who buys from manufacturers (or importers) and sells to retailers (i.e., a wholesaler). In the past, the term was used to refer to a dealer in odd lots or job lots.
A service merchandiser (previously rack jobber) is a wholesale middleman operating principally in the food trade, supplying certain classes of merchandise that do not fit into the regular routine of food store merchandise resource contacts. This middleman commonly places display racks in retail stores (providing an opening inventory on a consignment or on a guaranteed-sale basis), periodically checks the stock, and replenishes inventories.
See Also
References
- American Marketing Association, AMA Dictionary.