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Food Broker

Real-Life Activities

Real-Life Math

A typical day for you as a food broker is usually spent meeting with customers or prospective customers. With existing customers, you have to check stock on the items they purchase from you and order as needed to maintain their stock level. You also have to design and build displays from the companies that you represent.

With prospective customers, you have to present your product lines in a way that will persuade them to purchase those products from you. Sometimes that means bringing product samples. And sometimes that means using a presentation that will outline how they can save money buying from you as opposed to buying from another food broker.

In fact, you learned early on that even though sales skills are important, your math skills are equally as important. You've found yourself having to do everything from figuring food cost on a specific item to comparing the current year and the previous year's products.

Today is no exception. You'll be meeting with a prospective client over lunch. You know from previous conversations that price is a major issue for him. So you decide that along with some product samples, you'll bring examples of how he can save money while gaining quality by using your products.

You plan to take a cheesecake as one of the samples. You know that the one he uses has 8 slices and costs him $10.43. Yours, which is an imported item of gourmet quality, has 12 slices and will cost him about $13.07.

You're also taking miniature spinach quiches, an appetizer. The company that the buyer is purchasing from now sells them in a case of 36 at a cost of $12.37 per case. Yours have 48 in a case and will cost him $13.43 for the case.

The last sample that you're taking is a marinated New York steak. The prospective customer is currently getting 12 in a case for $27.09 per case. You sell them in cases of 12 for $24.39.

You'd like to show this customer how much he might save if he decided to purchase those items through you. So you'll also need to average the savings from all 3 of those products to determine what his savings might be on all of them.

Barbara Johnson is a food broker. She says that the math used by a food broker "is pretty basic -- food costs, percentages, operating margins, comparisons between this year and last. It's nothing that someone can't learn."

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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.