ShelfSlotROI Studio — Free Interactive In-Browser Studio
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Quick Reference & Frequently Asked Questions
How do retailer margin and distributor margin stack in the CPG pricing waterfall?
They compound sequentially down from MSRP. On a $10.00 MSRP with a 45% retailer margin, the retailer pays the distributor $5.50. If the distributor takes a 22% margin, they pay your brand $4.29—before broker fees or trade spend.
Why does a '1 Free Case Per Store' (Free-Fill) cost way more than my manufacturing COGS?
When you ship through a distributor, the distributor still buys the case from you and bills you back via a Manufacturer Chargeback (MCB) at the wholesale price PLUS a 10%–15% handling fee—turning a $20 COGS case into a $58 invoice deduction.
What is a healthy Trade Spend percentage for an emerging retail brand?
Most retail brands must budget 12% to 20% of gross wholesale revenue for trade spend (including temporary price reductions, scan-backs, distributor shows, and spoilage allowances).
What does UPSW mean and why do retail buyers care about it?
UPSW stands for Units Per Store Per Week (also called velocity). Retailers track dollar velocity per linear foot; if your UPSW falls below category benchmarks during the 6-month category review, you get delisted before recovering your slotting fee.