How are wholesale prices determined?
This is a Quora question I was asked to answer. Here is my answer. There are many different ways to set wholesale prices and anyone that does that will probably have their own nuances and rules of thumb they follow. For most product categories, consumers will compare you to competitive offerings, as they need a [...]
How are FMCG profit margins distributed across the supply chain?
Working from SRP (Suggested Retail Price) backwards, I see the following for FMCG profit margins: Anchor price/SRP: Start with SRP to your most expensive channel - which represents your top-most anchor price. The markup from you as vendor to retailer is 50-60% to the specialty/top priced retailers. For non-specialty channels - like drug, mass, grocery, club, [...]
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Does it make sense for brands to have their own E-commerce teams (direct-to-consumer online) or leave it up to the retailers to sell the products online? GalleryDoes it make sense for brands to have their own E-commerce teams (direct-to-consumer online) or leave it up to the retailers to sell the products online?
Does it make sense for brands to have their own E-commerce teams (direct-to-consumer online) or leave it up to the retailers to sell the products online?
I always have a direct-to-consumer online channel, and I always start that way and may or may not get to retail later. Here's why: Direct-to-consumer online is much more profitable than through retail. I always try to develop pricing so that I have at least a 30% net profit when selling D2C. Whereas with retail, [...]
How to build your website supplement sales funnel
See this video to learn about the elements, flow, and metrics for a good website supplement sales funnel. Click here to download the spreadsheet for this post.
How does category management enable suppliers to add value to the retailer’s business and not just its own?
This is a Quora question and here is my answer. Buyers are very busy and have tough jobs. Obvious ways in which suppliers can be helpful are strong product sales, marketing and tradespend support, and limiting out-of-stocks. Category management by the supplier also helps the buyer and can position the supplier as a strong category [...]
What are the top KPIs for CPG companies?
The KPIs for CPG depend on the channels sold. If sold direct-to-consumer, the top metrics I track include: Marketing spend; Message engagement rates (email, social views, social shares, hashtags, etc); Click throughs; Conversions; Average Order Value; Cost per click; Cost per visitor; Cost per order; Cart abandon rate; Cancels/Declines/Returns rates; Return on advertising spend (ROAS) [...]
How do I get my products into retailers like Nordstroms, Barneys, and Independent Shops?
This is a Quora question and here is my answer. Here is a general list of requirements before approaching retail: Have a unique and differentiated product, enough to capture consumer attention. Have prior sales history, either online or in smaller retailers to prove your product(s) and brand will sell. Have marketing support to help build [...]
Why you should ditch customer surveys and what to do instead to get product feedback
I am not a big fan of surveys, for the following reasons: Customers don't want to say what they really feel because it may reveal their deep biases that they are reluctant to share with anyone; They don't want to be seen as wrong; They don't want to be seen as ill-informed; Customers don't want to hurt [...]
How Facebook’s Reactions Is a Huge Step Forward in Marketing
Here's why I think Facebook's Reactions is so impactful. Marketing is ultimately about the marketer having an emotional impact on the customer, or buyer. We humans purchase and make decisions based on emotions much more than on logic. The ability for subscribers to now categorize a Facebook post by emotion let's Facebook know more about [...]