Tips to avoid joker brokers
These are important tips about how to identify a real seller from a joker broker. Unfortunately the products we sell are also sold as bulk commodities and yes sometimes they can be bought in large contracts and we are consistently approached by companies asking us to quote huge amounts of product and also by buyers who come to us mentinioning unreal prices that they received from joker brokers. We are real sellers and our product comes from real manufacturers so there are limitations and freight costs for example which are part of the business and they are only ignored by joker brokers and never by the real industry.
Some of the volumes that we have been requested to quote are not even possible for any delivery port to handle such volumes. Which duct would bring this “river” of grains to the port? And which mill will produce it? Answer: “the quantity requested simply does not exist”.
Sometimes we getting these so-called deals from good people, but perhaps they are getting them from the Joker Broker’s and they are simply forwarding believing they are real, but they are not. So, please, below we will give some tips about how to identify those joker broker “opportunities” for our friends and customers not to waste their time:
– Try always to talk directly to the Seller (legal owner of the product), such as our company, LE Group Industries.
– When a deal starts off with “send ICPO with BCL or Soft Probe, NCND and IMFPA” this is “Broker Language”. Those that know this “Broker-Language” know that this means: “I am a Joker-Broker – I don’t have any product for sale – so I want you to give me a Purchase Order with your full financial details disclosed, so that I can then run around with your order in my hands, looking for product and the next thing you will be seeing is your company details and your banking details exposed on the internet.
– Real buyers want to receive offers only from real sellers and a ‘real seller’ actually owns the product – he is the legal title holder of the product and 98% of the time he is not offering this product to the “Joker-Broker world” for sale. So you need to be sure of the circumstances as to why a “real seller” is offering “real product” for sale to a broker network when he can just call up the big multinationals, such as Bunge, ADM, or Cargill and sell it direct to them as they are always needing product.
– Nobody gives commodities prices away for nothing. About 95% of deals which have a low fixed price are false, are simply scams and there is no product available. They are the fabrications of the Joker-Broker brigade. A real seller will in almost all the cases only sell with a discount off a real based price and based on a real order we are negotiating, in the last movement of the deal sale, after having a proforma invoice in hands. Why would we sell sugar for somewhere in the $400’s per MT when we can get over 40% more from any current customer?
– The other deals which sell for a fixed price are mostly spot deals and they have a time window of few days. Within this time, they are normally sold and it happens sometimes that a Joker has access to it and start forwarding that trying to close this deals, but it does not exist anymore. They continue to offer them all around the world for months and months after they have already been sold. The Brokers will swear to you that the deals are genuine, as they may have been at the time, but what use is a so-called “genuine” deal when it was already sold and delivered months ago?
– In any real offer there will never be a huge discount or huge commissions to intermediaries . It just doesn’t happen. So when you see a huge discount and/or huge commissions to intermediaries, it is more than likely that the deal is false.– Real sellers always ask for a Letter of Credit or a down payment. No industry in the world will take the risk of producing and shipping a product for export, specially with private label if there is not guarantee that the product is at least partially paid. There are huge sorting, packaging, and FOB logistics costs which are non-reimbursable if a product is prepared for export and canceled at the lest minute. So, don’t believe in different payment terms as those because they basically do not happen. Even to send samples industries all over the world charge for them. That’s a practice conducted by the sellers to avoid joker brokers asking for prices and samples.
– There is a great cost difference on the freights to several seaports in the world. So it is quite difficult for a real supplier to offer prices CIF ASWP. Usually freights to East and West African seaports are way more expensive than freights to the major Asian ports.
– No supplier is going to commit for large supplies unless and until they are sure of funds. The prices of rice and all other commodities are very volatile and no supplier will seal the price unless and until there is a Price Variation Clause.
Try then to deal only with companies, such as LE Group Industries which are genuinely connected to their suppliers and offering real quotes, which may take even days to be ready based on the packaging, quantities, specifications, and seaports requested. Accept what real buyers say and do not waste your time with false promises from joker brokers which will just never happen.