A food broker is a person who assists a food producer or manufacturer in marketing and selling their products. He could work for a food brokerage firm or as an independent contractor. His typical clientele consists of a mix of retail outlets as well as independent and chain wholesalers. If his company grows, he may need to hire an assistant to help him with the paperwork and accounting.
If he works in a rural area, he usually travels a lot to service a select and usually small number of wholesale and retail customers. In contrast, if he lives in a city, his territory is usually smaller, but he has more businesses to serve. A broker usually focuses on serving a specific district in order to provide excellent service to his clients. The products he sells, on the other hand, are frequently manufactured, grown, and processed in different parts of the world.
From a manufacturer’s or producer’s perspective, hiring a food broker to get their products on the market is usually less expensive than paying a salesperson to do the job. Because most brokers work on a straight commission basis, he is only paid when the product is picked up a wholesaler or retailer, and he does not receive any company benefits. A company salesperson typically earns a salary plus commission and is frequently provided with expensive company benefits such as health insurance.
Wholesalers and retailers also benefit from using a food broker because it saves them time, money, and energy. Instead of meeting with multiple representatives from various manufacturers to review new products, the broker can present several lines of products in a short period of time. This allows retailers and wholesalers to quickly review their options and make decisions that are right for them.
Because a food broker is usually up to date on market trends and new product introductions, his clients regard him as a valuable source of information. He is frequently relied upon manufacturers and producers to keep them informed of new products that may compete with theirs. Retailers and wholesalers frequently turn to food brokers for guidance on when a promotion or new sales strategy is appropriate for maintaining a competitive advantage in the marketplace. All of the parties with whom the food broker works rely on him to keep track of inventory levels and properly dispose of obsolete or damaged goods.