Sales Agent vs Food Brokers for Food Products?

Sales Agent vs Food Brokers for Food Products?

Hi there!

We really hope you’re enjoying the blog posts that we have published over the last few weeks.

Keep an eye out for more, as they’ll be coming thick and fast.

You can up with our blog posts here: https://dynamicretail.com.au/blog/

Our aim with these posts is to help educate you as much as possible, so that when you set off into this industry, you’re armed with all the knowledge you need to make great decisions.

(Like choosing to work with us!)

If you have any questions on any of the topics we have covered so far, please feel free to leave a comment at the bottom of the articles and we’ll respond to you as soon possible.

You also more than welcome to give Steve a call on: +61 424 503 837

You’re also more than welcome to head on over to our Facebook page here: https://www.facebook.com/dynamicretailsolutions and hit us up with your questions there.

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… So Today’s Topic!

Food Sales Agents versus Food Broker Companies – What’s the difference, I hear you ask?

Well there are many ways companies in our industry describe themselves, below are just a few of them;

  • “We’re Food Brokers
  • “We’re Beverage Brokers”
  • “We’re Food Sales Agents”
  • “We’re Food & Beverage Reps”

Whilst these all very similar, there are a few small differences that you should be aware off.

#1.) A Food & Beverage Broker

A food & beverage broker company (such as Dynamic Retail), will typically work with major retailers around Australia (& overseas), such as Coles, Woolworths, Aldi, IGA.

A broker like Dynamic Retail will work on your behalf to get your products into large national retailers in Australia, as opposed to just 1-2 corner speciality stores, like a sales agent would aim for.

Dynamic Retail’s role will also be to ‘broker’ the following for you, on your behalf:

  • better trading terms,
  • better shelf placements,
  • better terms of services,
  • planogram support and compliance,
  • better pricing (profitable cost structures)
  • negotiating promotional displays &shelf opportunities,
  • & maximise the profit your company makes.

Another point of difference with a ‘Food & Beverage Broker Company’ is that you will be working with a team of people, as opposed to a solo ‘sales agent’.

So you will have guys like Steve, Pete & Jeff, who you can call on day or night with any questions you have, both during the process of getting your products into those stores and once your products are flying off the shelves!

#2.) So What Is A Food Sales Agent?

‘Food sales agents’ will typically work with smaller channels, such as restaurants, hotels, cafes, coffee shops, or perhaps even a bakery.

Food Sales Agent, is actually more of an American term, than an Australian term also.

Typically a food sales agent roles are more of a ‘solo job’ for one single person or a company employee. Their goal is to get your food products into those channels and to maintain those relationships.

This obviously comes with many risks. If they’re sick, unwell, or leave your company. You have to replace them and potentially start from scratch again. This could become a very time-consuming, and ultimately costly exercise.

———-

Now whilst we wouldn’t class ourselves ‘sales agents’, we can still certainly help.

Dynamic don’t typically work with clients that just want to have their products in ‘2-3 specialty stores’ however we would love to speak to you about your business and see where you’re at.

We understand that everyone starts somewhere and that small companies, have the potential to grow into very large companies, very quickly — assuming you have the right support

… Let’s look at this for example …

Let’s assume you have a really great tasting beverage that you invented and right now you’re already selling this beverage to a few local stores. But you want to go bigger.

The average small business owner here would head out and start knocking on doors and hoping for the best. So our job, as your broker, is to take care of all of that for you, but not just that, but much more too.

Let’s assume you’ve got a local company bottling the product for you, someone else is labeling the products, and someone else is delivering them, right?

Well, this is how Dynamic can help you:

  1. The first thing we would do is thoroughly research market demand for your product.
  2. Once we’ve established potential demand, we begin working with you, to establish more cost effective, quicker, production opportunities, from our existing partner network.
  3. We come up with a roadmap, with you, detailed how we can take your corner-store-brand, to a mass-retail-brand.
  4. We work with you to manage, sustain & grow your brand.

… We’ll leave that there for the moment, as we’re sure this is a lot to take in!

We hope that this article may have cleared up the difference between a sales agent and a brokerage company, but as always, we invite you to give us a call if you have any questions at all.

Cheers!

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