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Wholesale vs. Retail - Where Do You Fit In?
Wholesale vs. Retail - Where Do You Fit In?

The difference of wholesale vs. retail in the process serving industry

Written by James Racina
Updated over a week ago

Countless industries operate with wholesale vs. retail economics and the process serving industry is no different.

The concept of a retail price is generally defined as the price a customer would pay for a good or service directly from a Seller of that good or service. By comparison, a wholesale price is generally discounted from retail and is usually paid by a distributor or middleman who then resells the good or service at the retail price. Several factors generally weigh in on wholesale economics but most common are volume, simplicity of the transaction, and terms.

In process serving both Buyers and Sellers regularly encounter wholesale vs. retail pricing scenarios, sometimes without even knowing it. Historically the most common transaction is for a Buyer to purchase process serving from a distributor (process serving company) and that company then purchases the actual service from an individual process server (Seller). In this environment the Buyer pays retail to the distributor, the distributor pays wholesale to the Seller. But what if the market didn’t need the distributor? EZ Knock Marketplace aims to eliminate the need for the distributors (middlemen).

Sellers (Process Servers)

The price a Seller is paid for their service can vary greatly. Some Sellers actively engage in wholesale pricing while others hold firm to only sell their service (process serving) at or near retail prices. Each process server (Seller) is different, and their individual goals determine their overall inventory makeup.

Retail Only Process Servers – traditionally process servers that only sell their service at retail prices have significant alternate sources of income, have been in business a very long time, and have a strong book of business or live in rural or less competitive markets.

Wholesale Only Process Servers – traditionally process servers that only sell their service at wholesale prices are working in a more “GIG” like manner, don’t want the stress or hassle of marketing, and manage a small business or prefer a steadier and more predictable stream of work.

Hybrid Process Servers – process servers that sell their services at both wholesale and retail prices are most common in the industry. Some process servers may choose to have more of their inventory at wholesale prices whereas others may choose to only leverage wholesale opportunities from time to time. Regardless, most process servers engage in some form of below-retail trading at some point.

Wholesale Buyers

There are commonly two kinds of wholesale buyers in the process serving industry who purchase process serving at a discount over retail. High-volume law firms and state agencies that are “market movers” in their own right, demand lower prices from their Sellers (process servers). Many times, these wholesale buyers also choose to engage with the other type of wholesale buyer, which is a process serving company (a distributor). Process serving companies can range from several hundred employees across the entire country to an individual running a small business. In either case these process serving companies routinely buy from their Sellers at wholesale prices and then sell at retail prices to their customers. They are a distributor or a middleman.

Retail Buyers

Most law firms and legal professionals buy from Sellers at retail prices. These transactions (the serves) vary in type, consistency, and need which translates to a traditional retail market. In many cases these Buyers (customers) are purchasing from a distributor (a small process serving company) without realizing it. The process server, the individual actually performing the service, may be selling their service to the process serving company at a wholesale price, unbeknownst to the retail buyer. Historically retail Buyers have had very little choice when it comes to purchasing process serving because finding individual process servers (Sellers) was difficult and time consuming. EZ Knock Marketplace eliminates this entirely and allows individual Sellers to transact business directly with Buyers without the middleman resulting in better overall performance and economics.

EZ Knock Marketplace, changing the world of process serving through innovative technology. Buy, Sell, Serve with confidence.

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