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{{B}}Brokers{{/B}} Brokers neither physically handle products being distributed nor work on a continuing{{U}} (19) {{/U}}with their principals{{U}} (20) {{/U}}, a broker is an independent wholesaling middleman that brings buyers and sellers together and provides market information to either party. M0st brokers work for sellers, {{U}}(21) {{/U}}a small percentage represent buyers. Brokers have no authority to set prices. They simply negotiate a sale and leave it up to the seller to accept or{{U}} (22) {{/U}}the buyer's offer. They also furnish considerable market information{{U}} (23) {{/U}}prices, products, and general market conditions. Because of the limited services provided, brokers receive relatively small commissions—5 percent or less. {{U}}(24) {{/U}}, brokers need to operate on a low-cost basis. Food brokers{{U}} (25) {{/U}}buyers and sellers of food and{{U}} (26) {{/U}}general-merchandise items to one another and bring them together to complete a sale. They are well{{U}} (27) {{/U}}about market conditions, terms of sale, sources of credit, price setting, potential{{U}} (28) {{/U}}, and the art of negotiating. They do not actually provide credit but sometimes store and deliver goods. Brokers also do not{{U}} (29) {{/U}}goods and usually are not allowed to complete a transaction{{U}} (30) {{/U}}formal approval. Like other brokers, food brokers generally represent the seller, who pays their commission. Food brokers, {{U}}(31) {{/U}}manufacturers' agents, operate in specific geographic locations and work for a limited{{U}} (32) {{/U}}of food producers within these areas. Their sales force calls on chain-store buyers, store managers, and institutional purchasing agents. Brokers work{{U}} (33) {{/U}}with advertising agencies. The aver age commission for food brokers is 5 per cent of sales. |