Whenever someone develops an extraordinary idea for a food product and starts manufacturing it, they must figure out the best way to sell it. Although many food manufacturers often work personally with different retailers and try to convince them to sell the product, they don’t always get the best result. So what should everyone know about food brokers?
A food broker could provide you with an incredible growth opportunity. Many food manufacturers are trying to successfully market their products in stores. Food brokers work directly with manufacturers and potential buyers to market products. If you’re wondering what a food broker is, read on, here’s everything you should know.
What is a food broker?
A food broker is a food distributor that works with manufacturers to get their products into retail stores. They will usually buy the product in bulk and then sell their supply to the store themselves. If you don’t already know what a food broker is we urge you to read on.
These organizations work to build relationships with retail establishments. They do this so that they have the network and connections that allow them to sell products more easily than an independent food manufacturer. However, with distributors managing numerous brands, smaller companies must ensure that their business needs are not overlooked.
What does a food broker do?
You already know what a food broker is. However, it’s important for you to know that a food broker is assigned the complex task of selling a food product. They accomplish this through negotiating to stock their product in any store that sells food, whether it’s your local co-op or a popular convenience store.
Retail food brokers negotiate the price of their product and build relationships with buyers. In this way, producers do not have to spend time marketing their food product. Therefore, they can concentrate on manufacturing.
In addition to making sales and promoting products, food brokers conduct negotiations to help their clients achieve success in the marketplace. A food broker has several responsibilities when working with clients, which include:
✅ Selling product to stores.
✅ Negotiating product placement and pricing.
✅ Evaluate current supply and inventory for customers.
✅ Create actionable promotional plan for customer products.
✅ Develop and achieve long and short term sales goals with customer.
✅ Discuss discontinuation of products.
✅ Compare products with competitive products.
✅ Connect brands and manufacturers with potential buyers.
✅ Network with wholesalers, manufacturers and store owners.
✅ Evaluate potential product success by conducting market research.
How can hiring a food broker benefit you?
Once you know what a food broker is, you will soon know how to make use of their skills. A food broker can work as an independent contractor or for a food brokerage house.
Their clientele typically includes a mix of retail stores, as well as independent and chain wholesalers. If his business is successful, he may find it necessary to hire an assistant to manage the related paperwork and accounting functions for him.
If you work in a rural area, you typically travel extensively to service a select and generally small number of wholesale and retail customers. Conversely, if he is in an urban region, his territory is often smaller, but he has more businesses to serve.
In the interest of providing great service to its clientele, a broker usually concentrates on serving a designated district. However, the products he markets are often manufactured, grown and processed in locations all over the world. That is why it is so necessary to understand what a food broker is.
From a manufacturer’s or producer’s point of view, hiring a food broker to market your products is often more cost-effective than paying a salesperson to have your company do the work. Since a broker typically works on a straight commission, he or she is only paid when the product is picked up by a wholesaler or retailer, and receives no profit from the company.
A company salesperson traditionally works on a salary plus commission basis. He or she often even receives expensive company benefits, such as health coverage. So what is a food broker? The best investment for your company.
Other advantages of using a food broker that wholesalers and retailers enjoy are the savings in time, money and energy. Instead of meeting with numerous manufacturer representatives to review new products, the broker can present several product lines in a short period of time. This allows retailers and wholesalers to quickly review their options and make appropriate decisions for their business.
Because a food broker typically keeps up-to-date on market trends and new product introductions, their customers often view them as an invaluable source of information. Manufacturers and producers often depend on him to keep them informed about new products that may compete with their own.
Retailers and wholesalers often turn to the food broker for advice on when a promotion or new sales strategy may be appropriate to maintain their edge in the marketplace. All parties with whom the food broker deals depend on him to control inventory levels and properly dispose of obsolete or damaged goods. When business owners understand what a food broker is, they will be one step closer to success.
What to look for in a food broker?
A food broker uses sales-based skills, including customer service and negotiation, to successfully match manufacturers with potential buyers. These particular skills are useful as their job revolves around putting products on store shelves through a network of customers and buyers.
It’s not all about knowing what a food broker is. You need to know why you should use their services. Certain skills can help you achieve success as a food broker, which include:
▶️ Selling skills of a food broker.
Selling skills are important, as the client may depend on the food broker to distribute their product in the marketplace. These skills help the food broker analyze pricing, defend the product, and do successful business with stores and wholesalers. Generally, making sales can be a big part of this profession, so developing this skill can help you complete the job successfully.
▶️ Negotiation skills of a food broker.
Along with fundamental sales skills, food brokers negotiate the best possible deals for their customers. Negotiation requires product and market knowledge, as well as the ability to write a deal that benefits all parties involved. This is the skill most needed when making any sale.
It is important for food brokers to equip the client for success while maintaining positive relationships with buyers. Negotiation skills can help the food broker work with both groups successfully.
▶️ Interpersonal skills of a food broker.
With interpersonal skills, food brokers connect with customers and develop relationships with buyers in the region. Maintaining a large professional network in the industry helps food brokers link clients’ products with the best potential buyers. Implementing interpersonal skills can equip the food broker to expand and distribute products in other markets.
▶️ Customer service skills of a food broker.
It is important for food brokers to possess customer service skills. When making sales or negotiating with customers, food brokers often use customer service skills to communicate effectively.
When meeting potential new customers, customer service skills build trust between the consumer and the food broker. In addition to building a strong professional relationship, these skills benefit the overall success of the business. What is a food broker? A food broker is someone who works to satisfy his or her customer.
How to start a business with a food broker?
Once you understand what a food broker is and decide that you need their services, don’t delay in hiring their services.
What should you look for in a food broker?
The first thing you should establish before looking for a food broker is to know what you want, so that when you meet with them, you have clear objectives and expectations.
To find a food broker, you can search for listings online. Once you have found a few food brokers, you should do some background research. If you are initially satisfied, contact them for a phone meeting and, if local, an in-person meeting.
When you meet with a food broker, ask as many questions as you have on the agenda to make sure you both have the same vision for their product(s). Remember: Not every food broker will have the right expertise; you should choose without rushing.
Trade shows are a great way to meet with food brokers, so keep an eye out for upcoming shows in your area.