What Does a Retail Sales Broker Actually Do?

A retail sales broker is your outsourced sales team. They represent your brand to buyers at grocery, mass, club, drug, c-store, and specialty retailers, they manage the relationship with the buyer year-round, and they get paid a commission on every case sold through that retailer. A good broker is the difference between a product that gets listed and a product that gets sold.

There are three closely related roles that founders often confuse. A broker represents your brand to retailers in a defined territory. A consultant builds your sales strategy, your packaging, your pitch, and your distribution plan from the ground up. A manufacturer's rep usually carries multiple non-competing lines and works on commission, often inside a specific channel like foodservice or c-store. 104 Sales Group operates as a consulting firm that also executes the broker function, which means you get strategy and execution from the same team.

Day to day, a broker is doing four things. First, they keep your sell sheet, planogram, and promotional calendar in front of the buyer. Second, they monitor your velocity data and category share so they can argue for more shelves at the next review. Third, they coordinate with the distributor on inventory, freight, and chargebacks so your product stays in stock. Fourth, they prep you for retailer meetings and walk into those meetings with you.

Brokers charge commission on shipped sales, typically in the 5 to 10 percent range depending on category and how much work is required. Some brokers also charge a monthly retainer when a new brand requires heavy lifting in the first year. The retainer covers the fact that sell-in cycles are long and a brand new product can take 12 to 18 months to generate enough commission to justify the work.

Hiring a broker is not the same as hiring a friend with retail experience. Buyers know the difference. A broker with category authority has years of trust with a category manager who knows the broker will not pitch a junk product. That trust is the asset you are renting when you hire a real broker.

When evaluating brokers, ask three questions. Which retailers do you have an active book at right now, by name. Which brands in my category have you successfully sold in the last 24 months. What is your typical fee structure and what does it include. If the answers are vague, walk.

At 104 Sales Group, our team has placed brands across more than 350,000 retail doors in beverages, food, and novelty. We do not pitch your product unless we believe it can win in the category we are pitching it into. To talk about whether your brand fits our book, call (305) 323-2362 or use the contact form below.