Brokers neither physically handle products being distributed nor work on a continuing 【B1】 with their principals. 【B2】 , a broker is an independent wholesaling middleman that brings buyers and sellers together and provides market information to 【B3】 party. Most brokers work for sellers 【B4】 a small percentage represent buyers.
Brokers have no authority to set prices. They simply 【B5】 a sale and leave it up to the seller to accept or 【B6】 the buyer’’s offer. They also furnish considerable market information 【B7】 prices, products, and general market conditions.
Because of the limited services provided, brokers receive relatively small commissions — 5 percent or less. 【B8】 . brokers need to operate on a low-cost basis.
Food brokers 【B9】 buyers and sellers of food and 【B10】 general-merchandise items to one another and bring them together to complete a sale. They are well 【B11】 about market conditions, terms of sale, sources of credit, prices setting, potential 【B12】 , and the art of negotiating. They do not actually provide credit but sometimes store and deliver goods. Brokers also do not 【B13】 goods and usually are not allowed to complete a transaction 【B14】 formal approval. Like other brokers, food brokers generally 【B15】 the seller, who pays their 【B16】 .
Food brokers, 【B17】 manufacturer’’s agents, operate in specific geographic locations and work for a limited 【B18】 of food producers within these areas. Their sales force calls on chain-store buyers, store managers, and institutional purchasing agents. Brokers work 【B19】 with advertising agencies. The 【B20】 commission for food broker is 5 percent of sales.