Deciding on your broker strategy as well as the specific broker partners is a key decision in your brand’s success – certainly from a sales execution & financial accounting perspective. Yes, you read that right; it does say financial accounting perspective. Their role in executing trade spending plans, as well as documentation such as promotional contracts & agreements with customers provides a solid foundation for winning through trade excellence.
In many situations, new emerging brands are unaware of the role an excellent broker partner plays in their success. Often, we run into comments such as ‘I’m not sure what our broker does or does not do’, ‘We should have talked to more brokers’, or the ‘I’m not sure we have the best one calling on ____ (insert retailer)‘. Overall, brokers are great – with the right expectations & alignment on mutual objectives. Without that, and agreeing to these upfront, there will be areas of concern. Often you see posts asking, ‘Who’s the best broker at ____?’ While that can be an confirmation as a reference from a trusted source, the role of selecting a long term relationship with a core team member needs significantly higher focus. Some areas to consider in the process:
- A clear understanding of your brand’s & team’s sales execution objectives, strategies & tactics.
- Then determine what you plan to execute directly & what you need a broker to address. For example, you may develop the trade plan & make the initial calls with your broker – partner. Also, your partner could confirm promotional specifics via contracts & agreements for financial accountability.
- What retailers or geographies each partner would address & which ones will be sold ‘direct’.
- Other information to be provided – market level SPINS might be an example.
- Level & type of compensation – amount paid fixed fee, volume / $ sales based (also gross or net sales) & variable or performance based.
It is a significant decision & decision making process. There are numerous fractional partners that can assist with this & we’d be anxious to discuss. Please give us a call – learning is a key step in winning.