With its specialized expertise, a CPG sales broker works closely with various brands to connect them with a diverse range of retailers.
These brokers facilitate distributing and selling consumer packaged products across multiple industries, including food and beverages, personal care, household goods, and more.
What Does a CPG Sales Broker Do?
A sales broker undertakes several crucial functions for its clients:
- Sales Representation: The broker acts as the sales arm of its clients. They negotiate agreements, pitch products, and close deals with retailers.
- Merchandising Support: Brokers use strategic tactics to ensure optimal product placement in retailers. These include shelf placement, end-cap displays, and more.
- Distribution Management: The broker coordinates logistics and delivery with the manufacturer and manages inventory to prevent stock-outs.
- Market Insights: Brokers provide valuable market intelligence–like trends, consumer preferences, and competitive analysis–to help manufacturers refine their products and strategies.
What is the Difference Between a CPG Sales Broker and a Distributor?
While both play pivotal roles in the supply chain, CPG sales brokers focus on sales, negotiation, and relationship management between manufacturers and retailers.
Distributors, on the other hand, buy the products from the manufacturer and sell them to retailers. They also take on the responsibility of warehousing, order fulfillment, and transportation.
The Role of CPG Brokers in the Market
- Facilitate Market Access – Brokers provide manufacturers and brands with access to their network of retailers, helping to expand market reach and penetration.
- Drive Sales Growth – Brokers secure prime shelf space, negotiate favorable terms, and implement effective merchandising strategies to increase client sales.
- Navigate Retail Dynamics – Brokers use their expertise to navigate the complexities of retail by understanding retailer requirements, consumer preferences, and trends to optimize promotion.
Benefits of Using a CPG Broker
Partnering with a CPG sales brokerage offers several advantages for all types of brands:
- Cost Effective: A brokerage is often more cost-effective than maintaining an internal sales team, as it eliminates overhead costs associated with salaries, benefits, and training.
- Existing Connections: Brokers bring established relationships with retailers, enabling faster market entry and smoother negotiations.
- Sales and Marketing Strategy: Brokers align sales efforts with overall marketing strategies.
- Focus on Core Business: Outsourcing sales functions to a brokerage allows manufacturers to focus on the core of their business, such as product development.
- Rapid Deployment: For newer brands, brokers can quickly deploy their sales teams, providing faster market penetration compared to the time-consuming process of hiring and training an internal sales team.
- International Market Expansion: For international brands seeking to enter new markets, CPG sales brokers offer invaluable connections and support in understanding local markets and consumers.
How to Choose the Right Sales Brokerage Partner
Selecting the right CPG sales brokerage requires careful consideration of several factors:
- Industry Expertise and Connections: Evaluate the brokerage’s experience and relationships within your target market and industry segment.
- Brand Portfolio: Consider the brokerage’s track record in representing brands similar to yours, gauging their ability to position and promote your products effectively. But also keep in mind potential conflicts of interest.
- Retailer Connections: Determine which retailers the brokerage has existing relationships with and whether they align with your target distribution channels.
- Company Values: Ensure alignment with your brand values for a collaborative and productive partnership.
- Marketing Knowledge: Assess the brokerage’s understanding of consumer behavior, market trends, and effective marketing strategies.
High Point Sales and Marketing LLC
With over a decade of experience as a CPG Sales Broker, High Point Sales and Marketing LLC can transform your sales efforts and accelerate revenue growth.
We represent a portfolio of brands in the United States and design and execute custom sales strategies for them, from sales brokerage to target marketing.
We work with national and regional chains, wholesalers and distributors, and independent supermarkets to bring your brand to your customers. Our team is your partner in success.
