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SPPI FOR WHOLESALE TRADE IN ISRAEL

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Title: SPPI FOR WHOLESALE TRADE IN ISRAEL


1
SPPI FOR WHOLESALE TRADE IN ISRAEL
  • Ruth Vizner
  • Central bureau of statistics

23rd Voorburg Group meeting
Aguascalientes, Mexico 22-26 September 2008
2
Topics
  • Output definition
  • Market condition
  • Classification
  • National accounts
  • Pricing methods
  • Quality adjustment

3
Definition of the service (1)
  • The resale (without transformation) of goods from
    manufacturer to a third party retailers,
    industrial, commercial, institutional or
    professional users or other wholesalers, or
    involves acting as an agent or broker in buying
    goods for or selling goods to such companies.

4
Definition of the service (2)
  • Related services
  • Transportation
  • Warehousing
  • Promotions
  • Marketing
  • Packaging
  • Assortment building
  • Other services

5
Definition of the service (3)
  • Two types of wholesalers
  • Merchant wholesalers
  • Buy and sell goods on their own account
    (wholesale merchant or jobbers, industrial
    distributors, importers, exporters and
    cooperative buying associations)
  • Agents and brokers
  • Receive a commission or fee

6
Type of wholesalers
Wholesale on a fee or contract basis
Wholesale that take title to the goods
Manufacturers sales and branch offices
Agents and brokers
Wholesale merchants
7
Origin and destination of goods
Intermediate buyer Retailer Industrial institu
tional Other merchant
Local manufacturer
Wholesale trade
Final Customer
import
export
International manufacturer
International customer
8
Market Conditions (1)
  • In 2007
  • Industry revenue US 55 billion
  • 22,733 dealers
  • 17.7 percent of revenue in all industries
  • Market share of big companies 70
  • (3.5 percent of dealers with revenues US 40
    million accounted 70 of revenue)

9
Market Conditions (2)
  • Wholesale trade includes domestic as well as
    international wholesale trade
  • In 2005
  • Import of goods 25 of revenues
  • Export of goods only 4 of revenues

10
First group to develop
  • 512 - wholesale trade of agriculture raw
    material, live animals, food, beverage and
    tobacco
  • 5121 - Wholesale of agricultural raw materials
    and live animals includes grains and seeds
    oleaginous fruits flowers and plants
    unmanufactured tobacco live animalshides and
    skinsleather agricultural material waste,
    residues and by-products used for animal feed
  • 5122 - Wholesale of food, beverages and tobacco
    includes fruit and vegetables dairy products,
    eggs and egg products edible oils and fats of
    animal or vegetable origin meat and meat
    products fishery products sugar, chocolate
    and sugar confectionery bakery products
    beverages coffee, tea, cocoa and spices
    tobacco products

11
Group 512
  • In 2005
  • The biggest, 27 of revenue
  • US 11,591 million
  • Special conditions
  • Fluctuations in the prices of goods in global
    markets
  • Changes in exchange rates
  • Competition
  • Mergers and acquisitions
  • Globalization and new technologies

12
ClassificationISIC Rev 3
13
other Classification (ISIC Rev 4)
14
other Classification (CPC)
15
Classification
  • Detailed information and description of products
    and services.
  • Distinction between wholesale trade on own
    account and on a fee or contract basis.
  • Classification according to the function and kind
    of product (food, household, machinery).
  • Distinction between specialized and non
    specialized wholesale trade (in ISIC rev 4).

16
National accounts issues
  • How to measure prices of output for subsidiaries
    units of a manufacturing enterprise? (Units that
    sell manufactured products made by the parent
    company ).
  • How to estimate export in wholesale trade ?
    (export of services / export of goods).

17
Pricing methods
  • Gross margin price.
  • The difference between the acquisition price
    from the supplier and the selling price to the
    next buyer.
  • There are some cases
  • (I)  the average gross margin per unit for a
    particular customer class and/or supplier class
    for all sales within a product group.
  • (II)  the average gross margin per unit for a
    particular customer class or supplier class for a
    specific kind of product.
  • (III) the average gross margin for all customers
    and/or suppliers for all sales of a particular
    product.
  • (IV)  the average gross margin for all customer
    and/or suppliers for all sales of a product
    group.
  • (V) margin price for an item / transaction.

18
Margin Price
19
Quality adjustment methodology
  • Price determining component include
  • Product information
  • - Type of product
  • - Unit of measure
  • - Origin of product
  • - Additional services
  • Transaction information
  • - Type of costumer
  • - Type of supplier
  • - Size of transaction

20
Example of service description
21
Another example
22
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