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19. If 70–90% of trade spend is wasted, your promotions aren't fueling growth—they're draining profit.
Promotions should be rocket fuel for new customer acquisition, but when mismanaged, they destroy margin, create out-of-stocks, and train shoppers to only buy on deal.
In this foundational episode, I break down the biggest promotional pitfalls hurting emerging CPG brands: menu programs with no guaranteed execution, deductions that quietly erode profit, promoting against competitors at the same time, out-of-stocks during TPRs, and the dangerous trap of subsidized sales that inflate total revenue but don't grow base sales.
We unpack the difference between total sales and base sales (what retailers "take to the bank"), why predictable BOGO cycles weaken your brand, and how scorecarding, post-mortems, reach, and flawless execution separate category leaders from commodity players.
If you want to stop wasting trade dollars and start building sustainable, profitable growth, this episode is your blueprint.
Align your team around measurable promotional ROI. Then explore additional episodes to deepen your category leadership strategy.
Get instant access on the show webpage: RetailSolved.com/session19
By Daniel Lohman5
2222 ratings
19. If 70–90% of trade spend is wasted, your promotions aren't fueling growth—they're draining profit.
Promotions should be rocket fuel for new customer acquisition, but when mismanaged, they destroy margin, create out-of-stocks, and train shoppers to only buy on deal.
In this foundational episode, I break down the biggest promotional pitfalls hurting emerging CPG brands: menu programs with no guaranteed execution, deductions that quietly erode profit, promoting against competitors at the same time, out-of-stocks during TPRs, and the dangerous trap of subsidized sales that inflate total revenue but don't grow base sales.
We unpack the difference between total sales and base sales (what retailers "take to the bank"), why predictable BOGO cycles weaken your brand, and how scorecarding, post-mortems, reach, and flawless execution separate category leaders from commodity players.
If you want to stop wasting trade dollars and start building sustainable, profitable growth, this episode is your blueprint.
Align your team around measurable promotional ROI. Then explore additional episodes to deepen your category leadership strategy.
Get instant access on the show webpage: RetailSolved.com/session19

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