Structure and Performance of Grocery Products Brokers

摘要

The grocery products brokerage industry is generally competitive. Concentration is low in segments of the industry that primarily sell in local markets and high for brokers who sell nationally. Entry into the industry is not restricted and other types of wholesalers account for a large share of sales in the more concentrated industry segments. Brokers have been losing business to manufacturers' sales offices, and this trend could continue. Operating expenses and commission rates, which are highly correlated, vary with the type of products handled and establishment size. Large operations have the lowest rates, on an average.