What is a Food Broker?
Why would I use a Food Broker versus selling myself or hiring
a salesman?
How much does a
Food Broker charge for their services?
How do I select a Food Broker?
How long am I required
to commit to a Food Broker?
How quickly should
I expect results?
Q: What
is a Food Broker?
A:
A Food Broker is an independent agent who acts on behalf of a manufacturer
in selling and marketing the Manufacturer's Products.
Q:
Why would I use a Food Broker versus selling myself or hiring a salesman?
A:
Food Brokers represent the most cost-efficient method of doing business. A
salesman who is a direct employee is a fixed cost; a commission to a Food
Broker is a variable cost tied directly to the volume being sold. It can be
added as an exact figure to the cost of goods. Food Brokers also enjoy a close
relationship with the accounts they do business with. They understand the
needs and goals of their accounts and build their programs around them. The
familiarity of the Food Broker to the Trade adds more credibility to any line
of products that the Food Broker is selling.
Q:
How much does a Food Broker charge for their services?
A:
Food Brokers are compensated on a tiered commission basis. Commissions are
based on a variety of factors including type of product (i.e. grocery; health
and beauty care); brand (i.e. national brand; private label); type of coverage
(i.e. store level, corporate, regional); distribution; geography and more.
Products with no, or little, current retail distribution may require payment
of a monthly minimum in the early stages of our representation to cover certain
fixed costs. 1st Class Marketing bases its fee structure on a fair, highly
competitive, formula which recognizes that every product and situation is
unique.
We welcome the opportunity to work with you directly
to develop an action plan and fee structure tailored to your specific needs.
Please contact us
by telephone, email, or
fill out this simple online form, and one of our
staff will promptly get with you to discuss your brokerage needs.
Q: How do I select
a Food Broker?
A:
The Food Broker you select should already be selling in the department your
product is destined to be sold. Many Brokers tend to specialize in departments
such as Frozen Food or Confection. To assign either of them a Deli Product
would not be wise. Consideration should also be given to relative size of
the manufacturer to the Food Broker. The Food Brokers capabilities should
be in proportion to the level of revenue that a particular line of products
pays. Interviewing a few potential Food Brokers will give a good feel for
their differences. You might find that if your product has no present business,
no Food Brokers will be interested in your line in the absence of a guaranteed
minimum commission.
Q: How long
am I required to commit to a Food Broker?
A:
It used to be that the industry operated on a 30-day contract; those days
are over. Given the time and effort in launching and maintaining a line of
products, most Food Brokers will insist on a one year minimum contract with
automatic renewal based on satisfactory performance.
Q: How quickly should
I expect results?
A:
Given the extraordinarily competitive environment, the time between assigning
a Food Broker and actually getting an order is about 6 months. Getting appointments,
presenting the products, product approval, and shelf resets have added greatly
to the time line. Some buyers review categories only at specific times of
the year; others have the added step of securing a distributor for the line
of products before they can be presented to the trade.
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