Real Talk, Real Answers….
Do You Need Brokers?
Do You Need a “Master Broker?”
The only honest answer is “it depends on your business, your circumstances, each individual account, and YOU.”
What is a Master Broker?
A master broker is almost the same as having a senior level VP Sales that hires, trains, develops, and manages brokers in each market, for every account. However, a master broker is outsourced which means you do not have to pay a full salary for senior level experience, and you do not have to provide health insurance and other job benefits. Most master brokers are compensated a basic monthly fee plus an over-ride commission.
What makes David Biernbaum CPG Leadership Associates different than most other Master Brokers?
With 30 years of comprehensive CPG business development experience, my background goes much deeper than brokers, broker management, sales or national accounts, alone. I will assist, guide, or lead in any number of other areas including marketing, package design, business planning, mentoring, employee development, trade show planning and development, and any number of other areas in your business to give you the total package.
How much does it cost to hire David Biernbaum CPG Leadership Associates?
Depending on your needs, I will customize a plan that works exactly for both you and me. Generally the cost will be a small nominal monthly fee plus a small nominal over-ride on broker-commissions. Frankly, I’m able to offer fees and commission rates that are usually lower than other master brokers. My overhead is low, I have a lot of solid business, and I can accomplish a lot more in less time than most. I do get reimbursed for my authorized travel expenses.
Which brokers are associated with David Biernbaum CPG Leadership Associates?
With so many years in the business and so many contacts, I do not limit myself or my client-employers to any small group of specific brokers. I work with nearly all of the best broker groups in the nation, and I will appoint the brokers that are the very best match for your products, needs, and situation. There will be no square pegs. Only the right fits.
Are brokers necessary for every account?
In many cases certain accounts are better handled directly by you and me. In other situations, its best to use brokers. Again, the approach should be customized to fit your situation. But in all cases, with or without brokers, I will be involved “hands-on” to help get the best results on every sales call at every account.
Can you hire the same brokers without using a master broker?
Yes, in most instances you absolutely can. However what I bring to the table is the most important functions you will ever need to put your company in the best position to maximize your success; the right experience, qualified hands-on management, complete industry knowledge, credibility with retailers, and complete organization. And the retailers will appreciate and react more favorably to having a senior level highly experienced "VP" on your team. Honestly, retailers get very frustrated with having to “teach” companies and their unseasoned employee-representatives.
Real talk: If brokers go on the calls by themselves (or represent you without a master broker or senior VP representing your interest) then there is a tendency for the brokers to represent your interest only to a very "safe” extent. The master broker (VP) can take a more personal and heavier role in the scenario.
Why do some accounts desire to have brokers?
Not all buyers have a preference one way or the other. However the buyers that tend to prefer to have broker representation do so because they feel that most small manufacturers tend to waste their time. It's sad but true. Buyers don't have time to explain to new suppliers all the nuances and processes. Beleive it or not, many new suppliers will walk in to a buyer's office and ask something that reflects a total lack of knowledge and preparation; for example; "so how many stores do you have?" (Buyers do not like that question!) 
Buyers want supplier representatives to know their retail operations inside and out. They want experienced representatives to know the product categories, the retail sets, the POG's, all the procedures, the retail plan calendars, schematics, competition, etc. Frankly, for best results this is a team-effort stemming from the manufacturer's own product knowledge, the master broker's ("VP" level) industry experience, category knowledge, and his ability to present the big picture (profit plans, retail promotions, merchandising proposals, POG analysis, pricing analysis, category changes, etc.) and the local broker's systematic knowledge, forms, appointments, relationships, etc. That's how it works.
Candidly, it's my opinion that if every manufacturer came into every sales meeting knowledgeably, well prepared, and in an organized manner, with the right amount of experience, the truth is that most retailers would not necessarily push for broker representation. Real.
|