Building margins to launch in-stores profitably

Make Your Money.

That exciting moment when a retailer says "yes" to stocking your products? It's just the beginning of the real work: ensuring your in-store presence actually drives profit, not just vanity metrics.

Here's what successful brands do differently when planning their in-store strategy:

Start with your true COGS – and I mean everything. Factor in not just production costs, but also packaging upgrades required for retail, plus those small freight and fulfillment costs that eat margins. Retailers won't absorb these, so build them in from the start.

Price for all channels simultaneously. Your D2C price can't be drastically lower than retail or you'll undermine your partners. Work backward from a reasonable retail price point (that covers margins for everyone) rather than trying to force your existing pricing into a wholesale model. Bonus tip: if you are selling on marketplaces like Amazon or Target Plus, your product might be flagged/turned off if you are priced lower elsewhere. Price consistency is key.

Build retailer-specific promotions into your margin planning. Those fancy endcaps displays and feature placements? They come with costs. We recommend our clients allocate 8-12% of their wholesale revenue toward retail marketing initiatives before they even launch in stores.

Don't sacrifice quality for short-term margin gains. I've watched brands cut corners on ingredients or packaging to hit retailer margin requirements, only to see sell-through suffer. Better to launch with a tightly curated assortment that maintains your premium positioning and brand integrity.

Remember: sustainable retail relationships depend on both parties making money. When you build your margins intentionally from day one, you're setting up a partnership that can grow beyond that initial launch