Helping ambitious entrepreneurs scale their business using a proven, principles-centered framework 📈 Professor @ DU 📚 New Book (Now Available): "Ready, Set, SCALE! Scaling Your Business, Without Losing Your Soul" 📣
One dreadful day our CFO walked into my office and said to me, "Stephen, if this retailer orders in one more SKU from us, it's going to bankrupt us eventually." That was a wake-up call. This particular retailer—a national drug store chain—took in our products on consigned N75 terms (This was my first big mistake in entering retail blindly). Embarking on the journey from DTC to brick-and-mortar retail is a complex and multifaceted endeavor. And one that should be treaded on thoughtfully. Landing on a retail shelf is only half the battle; moving the product off the shelf is the real war. To navigate the complex retail environment, here’s a few of the areas you need to pay careful attention to: 👉 Pricing Achieving the optimal price point for consumers while mitigating the risk of channel conflict requires careful analysis and strategic pricing models. 👉 Packaging Crafting packaging that not only meets the right COGS to maximize margins but also capture a consumers’ wallet is essential. In addition, your packaging must tell a compelling story and entice shoppers at first glance. 👉 Logistics Adhering to the diverse routing guidelines of each retail partner is a labyrinthine task. The stakes are high here, as any missteps can result in costly penalties and your retail scorecard. 👉 Data The ability to interpret sales data accurately is the cornerstone of effective demand planning. In the retail environment, maintaining stock levels (at as close to 100% possible) is critical. 👉 Inventory Management Success in retail hinges on maintaining velocity. This requires exceptional forecasting, meticulous supplier management, and a proactive approach to inventory replenishment. 👉 Cash Demands Retailers often have extended payment terms and significant inventory requirements. Without careful cash flow management, even a successful retail presence can strain your balance sheet. Entering the retail market is a formidable challenge, requiring committed capital, robust resources, and strategic capabilities. When scaling a DTC #CPG brand into brick-and-mortar retail, it's not just about getting on the shelf—it's about staying there and thriving. —— What's your favorite retail horror story you’d like to share? #business #growth #leadership #productmarketfit #scaling #entrepreneurship #strategy #ecommerce #DTC #marketing #retail #Innovation #leanstartup #readySetSCALE #readyforscaling
