Distribution and Velocity - Back to Basics
This lesson is an essay published by Margin Velocity Program.
Read the essayWhat you'll get
Manoli Kulutbanis, whose Margin Velocity Program sells growth consulting and planning tools to CPG brands, defines distribution and velocity, including a store-size-weighted measure of distribution and the units-per-store-per-week calculation, and warns that adding stores faster than sales per store can hold up risks delisting and a cash crunch. It was written for brands that can buy scanning data, but it also suggests getting rough numbers from distributors or a few benchmark stores, which is how a small WNC maker can use it.
Do this week
Pick three stores that carry your product and write down the units each sold per week over the last four weeks, using the store's or distributor's own numbers.