6min chapter

The Startup CPG Podcast cover image

#83 Trade Spend & Retail Promotions 101 with Jake Huber (+ Niramaya)

The Startup CPG Podcast

CHAPTER

How to Set Up a Trade Rate for Emerging Brands

You should have a very healthy, what we would call trade rate. That means for every dollar you are selling, you're investing a percentage into a kind of a rolling accrual that you use for trade funds. Emerging brands need this more than mature brands because they have household penetration. So with that said, I try to do a preferred order of operations that keeps as much leverage on our side as possible.

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