Establishing commercials can be really complicated. There are so many variables involved in a conversation, which all affect whether you make money from a deal or not!
Commercial models exist to make it easier to see the margin you will walk away with and to get a really clear idea of the value of agreements to both you and your counterpart.
We’ve created a simple but effective commercial model that quickly gives you the information you need when pulling together that retailer proposal.
Input your costs and the terms of the deal (the number of stores, rate of sale, the promotions, any rebates and listing fees) and it will give you your revenue and profit figures, as well as the retailers? revenue, front margin and back margin figures. Play around to see what would happen if you make changes to the proposal and use it to quickly gain the insight you need to agree winning deals for both parties.
Commercial managers at FMCG brands that are selling to multiple site operators directly (rather than to a wholesaler) and have:
No more than 10 SKUs per format
4 or less promotions per year per format
This has been created by Young Foodies, specifically for UK FMCG brands.
Our Preferred Suppliers are a selection of businesses that we have vetted and trust to recommend to our brands. We have negotiated discounts or deals with many of them.
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