What is the primary focus of a broker in the distribution channel?

The primary focus of a broker in the distribution channel is to facilitate negotiations between buyers and sellers. Brokers act as intermediaries who connect producers and consumers while focusing on the transaction aspect of the relationship. Their role is to understand the needs of both parties and help them reach an agreement on terms, prices, and other relevant details without taking ownership of the goods. This makes the broker's expertise in negotiation crucial for successful transactions in the distribution channel.

While spending time on buying and selling goods might seem relevant, the broker does not typically take possession of the products and is more concerned with finalizing the deal. Maintaining inventory is not a responsibility of the broker, as they do not hold or store goods themselves. Marketing products also falls outside the primary focus of brokers; instead, this aspect is usually handled by manufacturers or retailers who actively promote their goods to consumers. Hence, the negotiation role clearly defines the broker's function in the distribution channel.