Specialty Marketing Services, Inc.
Food Products Marketing
Food Products Marketing
Hoover's puts the average cost of making a sales call at $379. On the conservative side if each of your salespersons makes two calls per day with 225 workdays per year, it costs you $170,550 just to make the calls. This is a hefty sum of money and must be considered when developing your strategy. Brokers that represent multiple principals are able to spread these costs and produce a more effective sales call.
SPECMARK
Representation is available to key accounts in the Retail, Foodservice and Club Store sectors of the food industry
FOOD BROKER
Food brokers are independent sales agents who own their own businesses. They represent producers and manufacturers of food and food products to specialized customers. They are strictly an agent and don't take title to the products.
Food brokers usually specialize in sectors of the food industry, such as retail (supermarkets), foodservice (restaurants), club stores and industrial (ingredients to manufactures). Most territories are geographically defined, although brokers that specialize in limited categories or key accounts have become more in demand.
Pros & Cons
The advantage to using food brokers for a producer is a fixed cost of sales, usually a commission rate. As for the customer, they save time and energy dealing with food brokers because they usually represent multiple principals, eliminating the need for dealing with too many Manufacturer's Representatives. A food broker will likely be very well educated concerning his/her market. They should understand the idiosyncrasies of how their customer makes money and help design successful marketing programs. They can be a valuable addition to your Marketing Team
On the other side of the low fixed cost benefit is the fact that you must compete not only with your outside competitors, but with your brokers other principals. You are competing for your broker's time.
Food brokers come with many types of organizations and personalities. While it is important to select one that you are comfortable with, always remember that a food broker only gets paid when he/she sells.
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SPECMARK, A KEY ACCOUNTS FOOD BROKER
Representation is available to key accounts in the Retail, Foodservice and Club Store sectors of the food industry
FOOD BROKER
What is a Food Broker?
Food brokers are independent sales agents who own their own businesses. They represent producers and manufacturers of food and food products to specialized customers. They are strictly an agent and don't take title to the products.
Food brokers usually specialize in sectors of the food industry, such as retail (supermarkets), foodservice (restaurants), club stores and industrial (ingredients to manufactures). Most territories are geographically defined, although brokers that specialize in limited categories or key accounts have become more in demand.
Pros & Cons
The advantage to using food brokers for a producer is a fixed cost of sales, usually a commission rate. As for the customer, they save time and energy dealing with food brokers because they usually represent multiple principals, eliminating the need for dealing with too many Manufacturer's Representatives. A food broker will likely be very well educated concerning his/her market. They should understand the idiosyncrasies of how their customer makes money and help design successful marketing programs. They can be a valuable addition to your Marketing Team
On the other side of the low fixed cost benefit is the fact that you must compete not only with your outside competitors, but with your brokers other principals. You are competing for your broker's time.
Food brokers come with many types of organizations and personalities. While it is important to select one that you are comfortable with, always remember that a food broker only gets paid when he/she sells.