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daveflintstone

Broker compensation

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If this is covered elsewhere please point the way.

For those of you who sell outside your main geographical area:  are you using a broker to market your products?  What is their compensation?

This question is about brokers not distributors.  The broker will take your unknown and non-distributed product to a new market and find distribution and push sales.   They will not actually distribute the products.

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Dave,

Generally speaking brokers charge anywhere from 10% - 15% FOB on depletions.  Many will also charge a base fee in the initial 6-9 months, in order to have some $ coming in as they build the brand.

Hope this helps.

TB

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I've used brokers in all control states to various but mainly unimpressive results. Getting menus and features printed is more complicated w brokers over distributors and you're better off doing it yourself in most cases. On top of that, their coverage is limited in those states, they don't hit full markets, they try to group you with their other brands in promotions etc. to the detriment of your own brand (its never about whats good for your single brand, but their portfolio as a whole- where as distrib. will have profit in the success of your brand individually). In most states brokers cannot even take or fulfill orders, and my main issue with them is the lack of reporting. In states where brokers would be valuable, reporting is limited and usually unavailable, so their reporting to you will be incomplete. Fuck brokers. Do the leg work yourself and save the margin for yourself, its just another leech trying to pull value from sales you and your brand likely generated for yourself.

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