Jobber: who they are in the closeout trade
A jobber is a closeout wholesaler who buys large lots, often whole truckloads or entire inventories, and resells them in smaller lots to retailers, market vendors, bin stores and exporters. Jobbers earn the spread between the big-lot price and the value of the smaller lots, and they carry the risk, labor and storage in between.
Reviewed by Tyler Kober · Updated
Key takeaways
- A jobber buys big and sells small, turning loads nobody else can take into lots others can use.
- Jobbers are often the fastest buyers for take-all deals and urgent liquidations.
- The word means different things in other industries, so context matters.
What is a jobber?
A jobber is a middleman in the closeout trade who buys large lots and resells them in smaller ones. A jobber might take a whole truckload of discontinued housewares, sort it, and sell it by the pallet to a few discount stores, by the case to market vendors, and the leftovers by the pallet to an exporter.
How jobbers work in practice
Jobbers fill a gap. Sellers with a big problem want one buyer who can take it all, fast. Small retailers and vendors want small lots they can afford and handle. The jobber stands between them:
- Buys whole loads, take-alls and urgent liquidations, often with cash and quick pickup.
- Sorts and grades goods into lots by category and condition.
- Resells to a network of regular downstream buyers.
- Disposes of what cannot be sold.
The jobber's margin is the gap between the whole-load price and the sum of the smaller sales, minus labor, storage, freight and disposal. Speed matters: stock that sits eats the margin.
Example
A retailer closing a distribution center needs everything gone in two weeks. A jobber with a warehouse nearby makes a take-all offer and runs trucks for several days. Within a month, the jobber has sold most of the goods to discount stores and exporters in pallet lots, kept a few high-demand items for repeat customers, and recycled the damaged cartons.
The common confusion
"Jobber" means different things elsewhere. In auto parts, a jobber is a parts distributor that supplies repair shops. In older finance usage, a stock jobber was a market dealer. In the closeout trade, it means the bulk buyer and re-seller of excess goods. Jobbers also differ from off-price retailers, who sell to consumers rather than to other businesses.
For the economics in more depth, read how jobbers make money.
Related terms
Frequently asked questions
What is the difference between a jobber and a wholesaler?
A traditional wholesaler buys current goods from manufacturers on a regular basis and supplies retailers. A jobber in the closeout trade buys opportunistically: excess, discontinued and distressed goods, whenever a load appears. Many businesses do both, and many jobbers simply call themselves closeout wholesalers.
Who buys from jobbers?
Independent discount stores, flea-market and swap-meet vendors, bin stores, small exporters and online sellers who cannot take a full truckload. They buy smaller lots that the jobber has sorted from bigger loads, at a higher unit price than the jobber paid, but in sizes they can handle.
Do jobbers only handle apparel?
No. In apparel and textiles the word has a long history, but closeout jobbers work across general merchandise, home goods, health and beauty, toys, footwear and more. Many specialize in a few categories where they have reliable downstream buyers and know the goods well.
Related
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