Industry Code: 62900
This industry covers businesses which sell and distribute products on a wholesale basis and are not appropriately classified elsewhere. "Wholesale" generally refers to the sale of product to others for the purpose of resale or for use in their own businesses. Businesses in this industry do not provide assembly, installation or after sales servicing of the products sold.
Operation Details:
This industry covers both wholesalers who operate their own distribution system (warehousing) and those employers who choose to contract out the distribution (warehousing) to public warehousing or trucking firms, etc. The key feature of businesses in this industry is that inventory is stored in the province for immediate distribution to customers.
Sales and distribution will include travelling sales activities and warehouse activities related to receiving product, breaking down shipments and placing into inventory, consolidating orders for shipping to customers and will include delivery of the order. Any or all components of the distribution system may be contracted out.
This industry may include some boxing or palletizing of product for shipping purposes but under no circumstances does this industry allow for any product modification, alteration, manufacturing, assembly or servicing.
Wholesale distributors may have a product display area but generally do not cater to walk-in trade or retail customers.
Equipment used in this industry will include fork lifts, pallet jacks and delivery trucks ranging from half-tons to tractor trailers units.
Underwriting Considerations:
Some notable exceptions classified elsewhere include food distributors classified in industry 69916; steel and pipe distributors classified in industry 62500; bulk petroleum and chemical distributors classified in industry 60800; drilling mud sales in industry 62303; and welding supply shops in industry 62303.
Distinguishing wholesale operations from retail is generally done on the operational characteristics rather than the pricing of the product. Retail businesses are typified by sales which rely on walk-in customers serving themselves from inventory placed on display, and paying for the purchase at a checkout. Wholesalers generally operate from a warehouse and pick orders in the warehouse for delivery. Product may be sold on account and there may be a varied pricing structure including volume discounts, trade or contractors' pricing, as well as wholesale pricing.
Businesses that provide warehousing and distribution services and do not take title to the products stored are classified in industry 52700, Public Warehousing. Public warehousing is restricted to those employers who operate warehouse facilities and generate their revenue from the custom storage of goods. These companies primarily serve out of province manufacturers who require an immediate supply of product in Alberta to supply local retail markets.
Travelling salesmen or manufacturers' agents, representing firms based outside the province with no stock of inventory in Alberta, are classified in industry 89100. For travelling salesmen and manufacturers' agents to be classified in industry 89100, they cannot have their own warehouse or contract out to a third party for warehousing of any product in the province.
The difference between industrial supply stores and wholesaling with or without warehousing is that industrial supply stores have walk in traffic/customers (retail sales), they generally sell to trade contractors (retail and wholesale sales) and repair and servicing is performed. The emphasis is on the sale of the product to the end user and may include after sales warranty servicing on the products sold. Whereas in wholesaling with or without warehousing, the sale of the product is to the retailer who in turn sells to the end user. No repair, servicing or modification is allowed in industry 62900.
Direct sales operations, independent of the parent company, involving home parties to market and sell their products are classified in the appropriate retail category which best describes the product being sold. These distributors are selling to the end user or home owner in a manner typical of retail sales activities. A central warehousing facility, operated by the parent company to support the home party distribution of their product, would be properly classified in this industry.
Premium Rate History:
Activities:
Direct Marketing Distribution, Wholesale
Wholesaling With Warehousing - NEC
Wholesaling Without Warehousing - NEC
Warehousing With Wholesaling - NEC
Multi-Level Marketing Distribution, Wholesale
Rate Group History:
There is an ongoing review of this industry to ensure only eligible employers are classified here. In recent years food distributors, bulk chemical dealers and drilling mud sales have been reclassified. Other than the reclassification of individual employers who do not qualify, there have been no changes to this rate group since restructuring began in 1990.
This industry covers businesses which sell and distribute products on a wholesale basis and are not appropriately classified elsewhere. "Wholesale" generally refers to the sale of product to others for the purpose of resale or for use in their own businesses. Businesses in this industry do not provide assembly, installation or after sales servicing of the products sold.
Premium Rate History:
Activities:
Direct Marketing Distribution, Wholesale
Wholesaling With Warehousing - NEC
Wholesaling Without Warehousing - NEC
Warehousing With Wholesaling - NEC
Multi-Level Marketing Distribution, Wholesale
Operation Details:
This industry covers both wholesalers who operate their own distribution system (warehousing) and those employers who choose to contract out the distribution (warehousing) to public warehousing or trucking firms, etc. The key feature of businesses in this industry is that inventory is stored in the province for immediate distribution to customers.
Sales and distribution will include travelling sales activities and warehouse activities related to receiving product, breaking down shipments and placing into inventory, consolidating orders for shipping to customers and will include delivery of the order. Any or all components of the distribution system may be contracted out.
This industry may include some boxing or palletizing of product for shipping purposes but under no circumstances does this industry allow for any product modification, alteration, manufacturing, assembly or servicing.
Wholesale distributors may have a product display area but generally do not cater to walk-in trade or retail customers.
Equipment used in this industry will include fork lifts, pallet jacks and delivery trucks ranging from half-tons to tractor trailers units.
Underwriting Considerations:
Some notable exceptions classified elsewhere include food distributors classified in industry 69916; steel and pipe distributors classified in industry 62500; bulk petroleum and chemical distributors classified in industry 60800; drilling mud sales in industry 62303; and welding supply shops in industry 62303.
Distinguishing wholesale operations from retail is generally done on the operational characteristics rather than the pricing of the product. Retail businesses are typified by sales which rely on walk-in customers serving themselves from inventory placed on display, and paying for the purchase at a checkout. Wholesalers generally operate from a warehouse and pick orders in the warehouse for delivery. Product may be sold on account and there may be a varied pricing structure including volume discounts, trade or contractors' pricing, as well as wholesale pricing.
Businesses that provide warehousing and distribution services and do not take title to the products stored are classified in industry 52700, Public Warehousing. Public warehousing is restricted to those employers who operate warehouse facilities and generate their revenue from the custom storage of goods. These companies primarily serve out of province manufacturers who require an immediate supply of product in Alberta to supply local retail markets.
Travelling salesmen or manufacturers' agents, representing firms based outside the province with no stock of inventory in Alberta, are classified in industry 89100. For travelling salesmen and manufacturers' agents to be classified in industry 89100, they cannot have their own warehouse or contract out to a third party for warehousing of any product in the province.
The difference between industrial supply stores and wholesaling with or without warehousing is that industrial supply stores have walk in traffic/customers (retail sales), they generally sell to trade contractors (retail and wholesale sales) and repair and servicing is performed. The emphasis is on the sale of the product to the end user and may include after sales warranty servicing on the products sold. Whereas in wholesaling with or without warehousing, the sale of the product is to the retailer who in turn sells to the end user. No repair, servicing or modification is allowed in industry 62900.
Direct sales operations, independent of the parent company, involving home parties to market and sell their products are classified in the appropriate retail category which best describes the product being sold. These distributors are selling to the end user or home owner in a manner typical of retail sales activities. A central warehousing facility, operated by the parent company to support the home party distribution of their product, would be properly classified in this industry.
Rate Group History:
There is an ongoing review of this industry to ensure only eligible employers are classified here. In recent years food distributors, bulk chemical dealers and drilling mud sales have been reclassified. Other than the reclassification of individual employers who do not qualify, there have been no changes to this rate group since restructuring began in 1990.