This is the third in the series from a webinar with Marc Nathan, consumer package goods (CPG) and Tech business mentor.
Pricing
Pricing is a tough topic. It is like asking “How long is a piece of string?” It is so variable. We know that wholesalers and big retail such as Target buys at 50% of the cost they sell it at. Many sellers pull out of Walmart due to price squeezing. When it comes to higher end pricing – you can go as high as people will pay.
Getting the product ready to present
Hire a marketing company for the branding, logo, labels, UPC codes and boxes. They are the professionals and they will get your product that point that that is market ready. If you want to know who is best in your category, find out who markets products similar to yours and reverse engineer to find out who did their marketing for them.
What is a disaster – when stuff comes back to you?
When product doesn’t sell - it stinks – you have to buy it back. Big retailers have the power. You have to pay them immediately and they do not pay you for 90 days. You can end up upside down in that scenario. Make sure the sell through is so high that they are pre-ordering the second batch. It is even worse for food – there is spoilage and no return.
What CPG lines are hot now?
What is selling now is what is healthy - no chemicals, no corn syrup. Also hot is anything with CBD, as well as Adaptogens – the plants and mushrooms that help your body manage physical and mental stress and Nutropics – brain boosters.
If you have questions about starting your own business, contact IDEA Hub Director Maia Donohue at donohuejer@uwplatt.edu and learn more about IDEA Hub at https://www.ideahubaccelerator.com/