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Pros and Cons of Working with a Food Brokerage Company

Food Brokerage Company

For many retailers, manufacturers, co-packers, and distributors in the food industry, working with a food brokerage company makes a great deal of sense. A food brokerage company, like Marvell Foods, can open doors to many buyers that would not otherwise be available to, or even on the radar of, many food-related companies. Food brokers can be essential in fostering growth and opening up new opportunities.

How do you know if they’re the right fit for your needs? We’ve outlined some of the biggest pros and biggest cons of working with specialty food brokers that you should know about as you research your options.

Pros

In the right situations, wholesale food brokers can make a significant tangible impact for a business’s bottom line – Here’s how:

  • PEACE OF MIND – FREES UP YOUR TIME  Being a business owner is tough work and time consuming. Hiring a broker to run or assist in sales frees up precious time while also providing peace of mind that another entity is responsible for securing sales of your product(s) – whether short coded, out of code, in storage/inventory, or even slow moving product you need to get off your books – a Food Broker can help.
  • Brokers can save your business money. Every day that inventory sits, whether on shelves, in a stock room or an off-site warehouse, costs your company money. Old or stagnant inventory is especially costly as your business’s capital is tied up in rapidly decreasing assets.
  • They have lots of connections. Brokers have many connections in the industry, which means that they can get your product into anywhere from smaller local shops to large chain stores—including places you might not have otherwise had access to, including prisons, food banks, commissaries, and a host of other unique, alternative niche outlets.
  • Their utility goes beyond sales. Brokers are pros at getting products sold, but they can also be an essential partner in marketing products. Food brokers generally have an excellent pulse on the market that extends into many facets of the food business which offers valuable insights into sales and marketing opportunities for your company.

Cons

Every business and every situation is different, which means that in some cases, working with a broker might not be for your company. Here are some of the cons to consider:

  • They represent brands other than your own. Big name brokers represent many clients at once; some may prioritize larger brands over smaller ones. [This is not the case for Marvell Foods as we ONLY take on customers and their products if we feel we can sell their goods. Note: there is no limit to the quantity of food/products Marvell Foods handles; Marvell Foods can move a single truck load or dozens of truck loads of products – the more weight/volume, the better.]
  • There are high up-front costs. Some food brokers will charge a retainer fee on top of their commission, which can make the cost unattainable for some small businesses. [Marvell Foods does NOT charge a retainer; as noted, we generally only provide services to companies for their goods/products that we believe we can sell.]
  • Success isn’t a guarantee. This is always the case in business, but when you’re paying someone else to do the work for you, it’s hard to stomach that it won’t always pan out. There are good brokers and there are not so good brokers, and because both types of brokers may require exclusive rights to represent your product, you may be precluded from going elsewhere—even if you’re not satisfied with the results.

What’s your best bet then? Spend time, energy and effort in trying to sell or dispose of goods and products outside the scope of your company’s specific areas of expertise? Or, partner with a food brokerage company like Marvell Foods who has three decades of experience and an unparalleled network of buyers, both nationally and internationally, with a wide range of buyers who can quickly sell your products and goods?

As one of the top food broker companies in the U.S. Marvell Foods is fully committed to ensuring that your experience is positive, productive, and profitable. Contact us to learn more about our services and how we can assist your business.

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