Many emerging CPG companies enter the market with a straightforward understanding on how to manage the basics of payroll & all the unique nuances around managing their COGs. They often leverage simple, easy-to-use tools like QuickBooks to maintain insights into their financial revenue.
Another important cost center to stay clear on the costs of is free product, collaborations, and advertising. It is much easier to manage when starting out locally & keeping the initial costs of new relationships low and clear. You may start out by hand-delivering product, or offer labor & cut product into a set to develop good-will & offer demos as a negotiating chip. All great practices! However, as the need to develop sales through larger distribution channels grows, it’s even more important to keep those new deals, placements & how much they’re truly costing a vendor in scope. There is a dollar amount to all of that ‘good will’ & it needs to be accounted for against revenue as it gets out of a vendor’s direct handling and grows outside that local scope.
When sales are executed through distribution, the new fee structures in those contracts & convenience of managing through a 3rd party DC can really seem confusing. The space between the fine print, the 1st PO, and invoicing is often overwhelming if a vendor is not prepared. And those ‘mismatches’ and confusion around deduction claims can stack up quickly when you’re on trend and leveraging the momentum you’ve worked so hard to gain. Keeping promotional trade & non-promotional trade spend under control and clear can seem hard to manage, but it happens to be our specialty!
Working with Adesso Technologies will:
You will have the information to manage with precision into your KPIs, and as you move forward with us as partners, you will clearly understand what works and what is not working in your trade promotions. If this resonates with you, we’d love to talk!