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Essentially they are sales specialists expertly skilled in expanding product reach by acting as an intermediary connecting manufacturers or suppliers with buyers, such as retailers or distributors. and their roles often involve:
Most commonly, product brokers work on a commission basis. This means they earn a percentage of the sales they generate.
This arrangement aligns their interests with those of the manufacturer, as they are motivated to maximize sales.
There can be other types of fee arrangements, so it is very important to have those terms defined within a contract.
Product brokers often have established networks and relationships with key buyers, which can significantly accelerate market entry.
They possess in-depth knowledge of the market, including trends, competition, and consumer preferences.
They can save manufacturers time and resources by handling the sales process.
Especially for companies that are trying to expand into markets that they are not familiar with, a broker can be invaluable.
Consider the broker’s experience in your specific industry and product category.
Evaluate their track record of success and their relationships with relevant buyers.
Ensure they have a clear understanding of your business goals and target market.
Request and check referances.
A product broker facilitates sales but does not take ownership of the products.
A distributor purchases products from manufacturers and resells them to retailers or other buyers, taking ownership and managing inventory.
Brokers sell, distributors provide logistical services.