Three Ways To Know You Need A Food Broker
Posted on: 4 November 2020
If you have designed a food product to sell, then you've most likely discovered that selling your product through stores and other vendors is more effective than attempting to do it yourself. However, in order to get your product on the shelves, you need to find the right stores, apply to become their business partner, and negotiate sales and other figures well before anyone buys your product. A food broker, an agent or company meant to connect food product manufacturers to vendors, can help.
You Don't Know Where To Sell
In many ways, the first step is the most important one, and your first step is to get your product in stores where viable customers can see it. You'll need to have an idea as to what kind of stores are best suited to your product, not only in terms of what kind of product you'll be supplying (anything from all-natural fruit bars to convenience food) but also the store management itself. This can be difficult, especially if you're just starting out in the food-service world. A food broker will have experience in finding the best vendor for your product, and they can leverage their existing relationships with local vendors to your benefit.
You Want Help With Negotiations
Once you've gotten your foot in the door, you'll need to negotiate the actual dollar amounts and amount of product to be provided to the vendor you've found. This can also be difficult, depending on your ability to handle these negotiations or how much knowledge you have around what counts as "typical" figures. Here, a food broker can also help. Once they've established a relationship between themselves, the vendor, and you, they can negotiate sale agreements to your benefit. Indeed, this is a major part of their job, as food brokers are meant to be freelance agents that replace a dedicated in-house sales team.
You Feel Like They're Worth The Cost
Finally, you can know for sure that you need to hire a food broker for your service or product if you've done the math and found that they can do the work of an in-house sales team more efficiently. Many food product manufacturers find that an in-house sales team is more expensive than the amount of revenue they produce, compared to the less-expensive food brokers. However, it's important to note that large manufacturers may find an in-house team more effective as time goes on, or simply less expensive.
Food brokers are an important resource to many small businesses hoping to get their product on the shelves. If you are interested in working with stores and vendors and acquiring help with negotiating sales, then find a food broker in your area today.Share