The purpose of this blog is to illustrate the difference between Plants Without Borders and traditional brokers, specifically for Guatemalan Growers.
The most common distribution channel for Guatemalan Growers who wish to sell their goods to the United States is through traditional Brokers. The distribution channel is structured as follows:
- Guatemalan Growers sell to Brokers
- Brokers sell to US Growers
- US Growers sell to Retailers
- Retailers sell to Consumers
This is why Brokers will not disclose the contact information of their customers. The less information Guatemalan Growers have about the US market, the easier it will be for Brokers to keep the sale prices of Guatemalan Growers low.
Thus, Brokers are incentivized to withhold as much information as possible from Guatemalan Growers. If Guatemalan Growers knew how to contact US Growers and sell to them directly, Brokers would be in danger of becoming obsolete.
Warren Buffett — 'The more you learn, the more you earn.'
Brokers want Guatemalan Growers to learn as little as possible about the US market. Plants Without Borders takes a different approach—we are happy to distribute information about the US market, for free.
Why would Plants Without Borders distribute information about the US market, for free?
Plants Without Borders is distributing information about the US market for free, for the following reasons:
- It separates us from other competing distribution channels (specifically Brokers):
- The business model of Brokers revolves around withholding US market and US customer information from Guatemalan Growers. By distributing US market and US customer information to Guatemalan Growers for free, we are clearly demonstrating the difference in how Plants Without Borders operates versus how Brokers operate.
- Market Information is only valuable to Growers when combined with the specialized labor required to perform the functions of Sales, Marketing, Logistics, and Procurement (for starter plants). Cooperative Members have access to outsourced, cost-efficient, ready-to-go specialized labor for these functions. This helps Cooperative Members save time and money.