Rack Jobbing

Definition:

The selling of another company's products through a distribution system of racks in a variety of stores that are serviced by the rack jobber

In a typical rack-jobbing business opportunity, the agent orbuyer enters into an agreement with the parent company to markettheir goods to various stores by means of strategically-locatedstore racks.

Under the agreement, the parent company obtains a number oflocations in which it places racks on a consignment basis. It’s upto the agent to maintain the inventory, move the merchandise aroundto attract the customer, and do the bookkeeping. The agent presentsthe store manager with a copy of the inventory control sheet, whichindicates how much merchandise was sold, and then the distributoris paid by the store or location that has the rack, less thestore’s commission.

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