Food Brand Pricing Strategy: A CFO's Guide

Matt Putra, 10 min read

This lesson is an article published by Eightx.

Read the article

What you'll get

The same fractional-CFO firm argues that you should price backward, starting from the shelf price your category will bear and subtracting each layer (retailer, distributor, broker, trade spend) to find the most your unit cost can be, and that a product sold online and in stores needs two prices. It also warns against pricing your website below your stores and explains why charging competing grocers different net prices can be illegal; the firm sells finance services and calls this practical guidance, not legal advice.

Do this week

Check the shelf prices of three competing products, pick the price a shopper would pay for yours, subtract each layer you expect, and write the highest unit cost you could afford.