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Broker Compensation


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We are in the process of drafting our broker agreement and are looking for some insight on how much some of you might be paying brokers to represent, sell in and otherwise support your products. We are in a control state so the state handles our distribution top state stores.

Reviewing broker agreements from a couple of the majors informs me that the rate is usually a percentage of the net sales of case product. The agreements I am looking at are 5 years old, but the compensation rates come in between 3% and 5% per case. In one contract there is a flat per case negotiated rate, and in the other there is a sliding scale of percentages, the more that sales goal is exceeded the higher the percentage commission. It looks like 5% is the ceiling for this last contract.

We'd love to hear about your experiences.

Keith Barnes, Bainbridge Organic Distillers

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