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SonofAbeach

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Reply with quote  #17 
isitjustme - you clearly are not hearing me right, I don't see anywhere in my comment anything about us reducing broker commission'? Let alone resources and expecting more. But now that you brought it up, you have to see what is happening since Cat Man, Acosta, Waypoints, Core Group has tried to take over it has all gone to shit! I don't know if it is true that these mega brokers are paying off the big corporate distributors or not, but if it ever comes out that this is fact then things will only get worse. You have to see what is happening because of the poor Broker network, and the refusal to show and sell products not stocked to actual customers? Manufactures are taking their money and going direct hiring more people and being successful at it. 
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isitjustme

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Reply with quote  #18 
Quote:
Originally Posted by SonofAbeach
isitjustme - you clearly are not hearing me right, I don't see anywhere in my comment anything about us reducing broker commission'? Let alone resources and expecting more. But now that you brought it up, you have to see what is happening since Cat Man, Acosta, Waypoints, Core Group has tried to take over it has all gone to shit! I don't know if it is true that these mega brokers are paying off the big corporate distributors or not, but if it ever comes out that this is fact then things will only get worse. You have to see what is happening because of the poor Broker network, and the refusal to show and sell products not stocked to actual customers? Manufactures are taking their money and going direct hiring more people and being successful at it. 


commission reduction is a fact. In the 90's average broker commission was 4% - today it is less than 2%. If you have experience in the broker and manufacturing world you know this as a fact. Lets hear from the brokers - who is receiving higher commissions than in the 90's 

catman/by whatever name.... vendor alliance , preferred supplier, is a farce - still taking money from the local lines and getting big coin from the Nationally aligned manufacturers.

if brokers are paying off or supplying kickbacks to distributors the legal geniuses will drag them into court

some brokers say the issue today is as much the fault of manufacturers who A - don't have the quality of sales leadership they once had , and B - their companies have them spread over too big a geography - lets hear it from all you manufacturers out there, how many of you are working a tighter geography than you were 5 years ago.

I'm sure we can all agree the business is not as fun as it once was.
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SonofAbeach

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Reply with quote  #19 
You must be confusing me with someone else! First our company still pays 4%, and sometimes even a reduced rate for some National Accounts that the broker had no part of acquiring, and you are right about some of the experienced Regionals changing. I feel all Regionals should be Brokers first but some will disagree and some are just people that inherited their spot cause of family or whatever.
The Stretched Geography you nailed! No argument from me there, even I have had to suffer to that. But at the end of the day when a Broker can't even sell a Close Coded Item sitting in a Distributor for fear of Punishment by the Distributor what do we do? I love making my own calls and forcing product into Distribution, but these days now the Distributors are owning the Brokers and that is why, I think, we are seeing more Manufactures starting to go Direct!
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isitjustme

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Reply with quote  #20 
Quote:
Originally Posted by SonofAbeach
You must be confusing me with someone else! First our company still pays 4%, and sometimes even a reduced rate for some National Accounts that the broker had no part of acquiring, and you are right about some of the experienced Regionals changing. I feel all Regionals should be Brokers first but some will disagree and some are just people that inherited their spot cause of family or whatever.
The Stretched Geography you nailed! No argument from me there, even I have had to suffer to that. But at the end of the day when a Broker can't even sell a Close Coded Item sitting in a Distributor for fear of Punishment by the Distributor what do we do? I love making my own calls and forcing product into Distribution, but these days now the Distributors are owning the Brokers and that is why, I think, we are seeing more Manufactures starting to go Direct!


I don't think we're way off track here,  and kudo's to your company for paying standard brokerage. The statement above "a Broker can't even sell a Close Coded Item sitting in a Distributor for fear of Punishment by the Distributor" Is the problem the broker, distributor, or manufacturer.

A broker is going to cow tow to the distributor or risk losing other business at the distributor , including the line being pushed on behalf of the manufacturer. Is this good for the manufacturer ?- do you want your broker to risk his/your business by selling a closed coded item. The reason it's close coded most likely has to do with a marketing program, money paid to the distributor broker to "market" the products. Is there accountability for this money , does the distributor earn the money by marketing products on the manufacturers behalf or is it just back end money - a profit center.

The distributor has preferred brands that participate in these programs. They would prefer to sell a participating manufacturers products. Why are your items close coded ? Are you in the marketing program ? If so stipulate  to the distributor your items are to be open coded.

Question - how would you have your broker handle this issue to the benefit of your line and their agency ?
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broadliner

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Reply with quote  #21 
Close coded items are there for several reasons. It is a spec item for a national or regional chain. It is a national brand that conflicts with a private label item (it might even be the same item in different boxes). It is hard to source therefore the company limits who sells it.

Close coded items can become open stock if the customer or manufacturer gives permission. Perishable products are moved to open stock to get faster movement.
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SonofAbeach

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Reply with quote  #22 
Broadliner - That is not always the case, you refer more to proprietary items. Sometimes the Distributor just doesn't want an item that could either compete with their brand, or with another manufacture that maybe paying them more marketing money, not what the actual customers may want.

isitjustme - we always offer competitive marketing if items are open coded, and zero marketing if remained closed. I don't have all the answers but I do wish the fan base would grow on this so more brokers and manufactures could bounce ideas on what has worked for them and what has not, this could be very resourceful! One thing brokers should have is a list of items they have close coded, so they can offer it to certain sales reps they know are looking for new and different. The other is owning the customer... Their broker offices should be wanting their street brokers to have more of the relationship with the end user, invite them to their office for Customer Visits, to show them new and trending items they will not see at a distributor food show. Each office should determine, and own, their own Key Accounts, and have a plan on how to own the customer. Do you know most Broker offices I visit for meetings and training, the Brokers do not even know how to use DOT Expressway? I am sorry you are not a Professional of your trade if you do not even have a username and password for DOT Expressway to know your lines and what is Stocked vs Special order etc. Trust me, most of my brokers are great, ( I am fortunate), and I would never want to do what I am doing now without Brokers, but we just did such a better job back in the day then what I see today that's all!  
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