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"Merchant Wholesalers Merchant wholesalers make up 80 percent of all wholesaling establishments and conduct slightly less than 60 percent of all wholesale sales. A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses, government agencies, other wholesalers, or retailers. All merchant wholesalers take title to the goods they sell. Agents and Brokers As mentioned earlier, agents represent manufacturers and wholesalers. Manufacturers’ representatives (also called manufacturers’ agents ) represent noncompeting manufacturers. These salespeople function as independent agents rather than as salaried employees of manufacturers. They do not take title to or possession of merchandise. They get commissions if they make sales—and nothing if they don’t. They are found in a variety of industries, including electronics, clothing, hardware, furniture, and toys. Exhibit 12.5 If diamonds are a girl’s best friend, then women can find plenty of friends at Sam’s and Costco. The two leading membership warehouse chains recently entered the luxury market, offering expensive diamond rings at steeply discounted prices. At Sam’s, a 3.74-carat pink diamond pendant was reportedly priced 25 percent below its $750,000 valuation. At Costco, a 5.6-carat yellow-diamond ring valued at $280,000 listed for $99,999. Why do cash-and-carry wholesalers offer jewelry for considerably lower prices than those offered by high-end retailers such as Tiffany and Neiman Marcus? (Credit: Phillip Pressard/ Flickr/ Attribution 2.0 Generic (CC BY 2.0)) Brokers bring buyers and sellers together. Like agents, brokers do not take title to merchandise, they receive commissions on sales, and they have little say over company sales policies. They are found in markets where the information that would join buyers and sellers is scarce. These markets include real estate, agriculture, Chapter 12 Distributing and Promoting Products and Services 467"