Every brand’s cheat sheet for smarter trade spend
Ever wonder where all your dinero is really going when it comes to trade spend? Here’s what you need to know, at a glance.
What is Trade Spend?
The amount of money a brand puts out to boost demand for its products through things like price promotions, coupons, ads, slotting allowances that ensure preferential placement and coop-advertising.
Trade Spend Includes:
OI allowances
Typically, 15% of list
price for one month per quarter
Short coded, pickups and discontinued product
Retailer promotions scans, ad fees, display allowances
Slotting Upcharge of 8% to 10% for major chains and 35% for independents
Distributor food shows & promotions Often built into distributor agree-ments at $7K per show; up to 10 shows per year.
Administrative charges and late fees Result in 4% to over 6% of gross revenue per year
PAID CONTENT
Do you know exactly where yours is going—and how much you’re spending?
Heck yeah!
Not really …
Are you happy with how you’re spending on trade promotions?
How much of an average brand’s gross revenue goes to trade spend?
5%-10%
10%-20%
80%-90%
20%-40%
of survey respondents said they don’t effectively spend money on retailer/distributor trade.
The Dissatisfaction Factor
33%
said they were unsure if it was effective or not.
40%
Not really …
Heck yeah!
Pays for Itself Immediately
You can save the equivalent of 6 years of subscription your first year by reducing deduction aging and securing repays of unauthorized deductions. (See case study)
Brokers Love It!
The system enables greater broker involvement, which saves admin time for your internal sales and finance team to spend building and analyzing your business.
Converts Sales Time from Admin to Analysis of Trade Ditch the spreadsheets and leverage a flexible annual planner so your sales team can reduce admin time and improve trade effectiveness.
It’s Painless
Your setup is quick and easy and training for your internal and broker team, as well as administration of the system is taken care of.
Makes Your Trade $ Work Harder for You
You need significant information over an extended period of time, in order to make more strategic decisions for trade planning based on what works and doesn’t work.
Complete Line of Sight & Accountability
You should know what you are investing in trade spending at every direct and indirect customer, like you do any other item on your P&L.
6 Reasons You Should Do it Now
Correct! - 20%-40%
Wrong - 20%-40%
Do you have a plan to do something to improve trade spending in the short term?
Not really …
Heck yeah!
How would you rate the following statements on trade spend?
How would you rate the importance of getting a better handle and ability to manage trade spend?
How interested would you be in a cost effective solution that?
Responses from a New Hope Network survey of 106 natural and organic products manufacturers.
of survey respondents said it’s very important to get a handle on trade spend.
64%
To learn more about the right trade spend management solutions for your company, go to adessosolutions.com.