If a particular line of products has no present distribution, many manufacturers choose to pay a minimum monthly commission ranging between $1,000 and $2,500 for the first 6 months. This minimum is paid to compensate Brokers for out-of-pocket expenses in establishing a new product in the market while no regular commission is being collected.
How much does a Food Broker charge for their services?
Typically, a commission of 5% is paid on Branded Products and 3% on Private Label (Store Brand) Products. General Merchandise and Health and Beauty Care products sometimes pay a larger commission up to 10% or more.