Retail Store Brokers
The retail business is basically the sale of goods to consumers. It is that outlet that deals in the transfer of the product to the last person in the supply chain – the consumer. The retail outlets could be the supermarket, the retail stores, the grocery stores, the convenience store and many others.
However, selling at a retail store isn’t easy. If the retail were to be an online store like Amazon, things could be easier because of the traffic online and the ease at which goods get to the online customers. But for the brick and mortar retail outlet, more has to be done.
A retail store is an essential part of the supply chain – it is the point where the consumer can get items to purchase. All other points in the supply chain don’t directly deal with the final consumer. However, retail stores are almost everywhere. You can find a convenience store in almost every neighborhood. Thus, the competition is tough.
Brokers are basically agents. Some people call them commercial agents. What they do is to enter into contract as agents for persons technically known as principals. In this case, the principals are manufacturers. They work independently and receive commission on the products sold. Simply, they work on getting the products of manufacturers into several retail stores. To do this successfully, they gather a substantial wealth of knowledge and contacts to network their ways into convenience stores and inevitably have their products stocked.
Retail store brokers work to get suppliers and distributors for the retail store. A retailer has to put up goods for sale but without connection to distributors in the supply chain, it may be hard to get business done. This is where the retail broker steps in. With connection to distribution and retail stores, the broker can help the retailer get distribution. The broker can also help the distributor connect with market looking for distribution. Thus, the work of the distributor benefits both the distributor and the retailer. The broker makes his commission and business is done.
A broker should not be confused with a wholesaler or distributor. The broker is an agent that helps to connect the manufacturer, distributor, and retailer in the niche for a commission. Thus, the broker works at getting markets. It is left to the manufacturer, distributor, and the retailer to discuss the terms of their agreement and see how they can work together to do business.
Many distributors and retailers have entered long and successful agreement due to the work of a broker. The job of a broker should not be overlooked. Well, the supplier can go and get the goods to the store himself but this is not the case for every supplier. Many suppliers are new to the market and the terrain and are in search of retail outlets to distribute to. The same goes for retail centers as they may not have suppliers for some products or are looking at getting new suppliers to be able to give their customers variety.