Tuesday 4 June 2013

What are Merchant Kings?

Merchant Kings are companies that share many characteristics with Rule Maker companies, yet never entirely qualify as Rule Makers — usually because their gross and net margins fall short of the required levels. This is to be expected, though, because retailers traditionally do sport lower margins. What they lack in margins, though, they tend to make up for in volume.

Whereas Rule Makers tend to be manufacturers, Merchant Kings are distributors. Examples of Merchant Kings include Wal-Mart, Home Depot, Dell Computer, eBay, and Amazon.com.

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