EDLP vs. High-Low: A Tie on Paper, $82K Apart in Practice
Modeled on the same line, EDLP and high-low net the same $3.97M. Running the promotions costs $82K more. The arithmetic the price sheet leaves out.
Modeled on the same line, EDLP and high-low net the same $3.97M. Running the promotions costs $82K more. The arithmetic the price sheet leaves out.
A 220-store placement costs $68,728 before the first jar scans. The payback math by velocity, and the week the category review lands on top of it.
Rank a $25M brand's channels by revenue and Walmart wins. Rank them by contribution after every deduction and the order scrambles. An interactive walk from gross revenue to the capital-allocation decision.
A $25M food brand writes off ~$67K in invalid retailer deductions a year without opening the file. Where the money hides in the data, and why it decays.
Book trade spend as marketing and your gross margin reads 52% when it's 44%. Why ASC 606 makes it contra-revenue, and what the misfiling hides.
A specialty food brand grew revenue 22% while cash declined. S&OP is the reconciliation of demand, production, and cash that most brands skip.
The same $1M of revenue yields ~$54,000 more contribution through retail than through distribution. Most brands allocate by revenue rank, not contribution rank.
A $500K placement can close year one at negative cash. The five cost layers to model before you commit: slotting, trade, compliance, float, and overhead.
The gross-to-net bridge is built from scan allowances, MCBs, slotting fees, and distributor deductions, none of which appear on a standard P&L.
How much trade spend is normal for a specialty food brand, what the money is actually buying, and which components carry no performance link at all.