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<\/figure>\n<\/div>\n\n\nIn my recent interview at ECRM\u2019s Center Store Grocery Sessions<\/a>, Shannon Peffley, founder of CPG Xperience<\/a>, shared some advice for new CPG founders based on his more than 20 years of experience spanning distribution, brand ownership, and consulting. <\/p>\n\n\n\n To ensure your brand is built for longevity, here is a deep dive into the four mistakes Shannon Peffley warns every CPG founder to avoid during the buyer pitch process. You can watch our full interview in the video below!<\/p>\n\n\n\n The most common mistake Peffley identifies is a lack of retailer-specific knowledge. Many brands walk into meetings with a generic pitch deck that could apply to any retailer. To a buyer, this signals that the brand doesn’t understand that retailer\u2019s specific customer base.<\/p>\n\n\n\n Peffley\u2019s Insight:<\/strong> \u201cI think one of the biggest mistakes that a lot of brands have is they don\u2019t understand who the retailer actually is. They\u2019ve never actually been in a store. They don\u2019t understand the demographic that\u2019s shopping there or why their product is actually a good fit there for the store.\u201d<\/p>\n\n\n\n When a buyer asks, “Where do you see this on my shelf?” and the founder gives a generic answer like, “With the other snacks,” they\u2019ve already lost the buyer’s confidence.<\/p>\n\n\n\n How to Fix It:<\/strong> Before the pitch, you must conduct physical or digital store audits. If you cannot visit a location, Peffley suggests leveraging your network. \u201cReach out to a friend. \u2018Anybody live near a Central Market or an H-E-B that can go in for me and connect with that?\u2019 See if it’s an older demographic or a younger demographic.\u201d<\/p>\n\n\n\n Knowing whether a retailer uses specific promotional programs, such as front-end register placement or specialized end-caps, allows you to tailor your pitch to their specific operational style.<\/p>\n\n\n\n For many founders, the goal is getting that initial purchase order. However, Peffley argues that getting onto the shelf is actually the easy part. The real challenge is staying there.<\/p>\n\n\n\n The Mistake:<\/strong> Having a plan to get on<\/em> the shelf, but no plan to get off<\/em> the shelf and into shoppers’ baskets. <\/p>\n\n\n\n Peffley\u2019s Insight:<\/strong> \u201cI always tell brands, the easiest part is getting on the shelf. It\u2019s hard, but it\u2019s probably the easiest step. That\u2019s when the real work begins. Tell me how you\u2019re going to get off the shelf.\u201d<\/p>\n\n\n\n Retailers are not interested in products that take up space without moving. If your product doesn’t have velocity (the speed at which product is sold), you will be discontinued within a few months.<\/p>\n\n\n\n How to Fix It:<\/strong> You must present a robust marketing and pull-through strategy. This includes:<\/p>\n\n\n\n Pricing is where most emerging brands break their business model. Many founders believe that being the cheapest option on the shelf is the best way to win a buyer\u2019s heart. Peffley warns that this is a recipe for bankruptcy.<\/p>\n\n\n\n The Mistake:<\/strong> Not understanding the full cost of goods sold (COGS) and the various “takes” from distributors and retailers. <\/p>\n\n\n\n Peffley\u2019s Insight:<\/strong> \u201cThe race to the bottom is not the answer. Build good quality margins from the get-go \u2013 don\u2019t tell them, \u2018Hey, once we scale, we\u2019ll get our pricing down.\u2019 It never happens because it\u2019s just a snowball effect.\u201d<\/p>\n\n\n\n The Pricing Reality Check:<\/strong> When setting your Suggested Retail Price (SRP), you must account for:<\/p>\n\n\n\n If you price your product too low initially, you won’t have the funds needed to run the promotions that drive the velocity mentioned earlier. If you try to raise prices 90 days after launch, the retailer is more likely to drop you than accept the hike.<\/p>\n\n\n\n In the high-pressure environment of a buyer meeting, there is a temptation to say “yes” to every question. If a buyer asks if you can supply 5,000 stores by next month, a desperate founder might say yes without having the co-packer or supply chain in place.<\/p>\n\n\n\n The Mistake:<\/strong> Lying about capabilities, social media reach, or inventory levels. <\/p>\n\n\n\n Peffley\u2019s Insight:<\/strong> \u201cThe second you lie, it\u2019s going to come back. If you lie about your social media following, it\u2019s easy to look up. If you lie about where you\u2019re at, it\u2019s easy to look up. Just be real and honest.\u201d<\/p>\n\n\n\n Buyers are industry veterans. They can smell BS from a mile away. If you promise a national rollout and fail to deliver, you haven’t just lost a sale \u2013 you\u2019ve burned a bridge with a category manager who may move to other retailers throughout their career.<\/p>\n\n\n\n How to Fix It:<\/strong> Be a straight shooter, and honest about what your capabilities are, and what they are not<\/em>. If you aren’t ready for national rollout, propose a test. \u201cGive us the top 100 stores. Let\u2019s make sure that we are a good fit for you and this partnership works,\u201d Peffley suggests. This builds trust and allows you to work out supply chain kinks on a manageable scale.<\/p>\n\n\n\n Here is a final checklist based on Shannon Peffley\u2019s expert advice:<\/p>\n\n\n\n Navigating the CPG landscape is difficult, but you don’t have to do it alone. As Peffley notes, many brands use services like CPG Xperience or platforms like ECRM<\/a> and RangeMe to bridge the gap between a great idea and success at the shelf. \u201cI love giving free information. I love connecting. I love helping founders down the right path,\u201d Peffley says. <\/p>\n\n\n\n By avoiding these four common mistakes, you move your brand from the statistic category into the success story category.<\/p>\n\n\n\n Watch my full interview with Shannon Peffley below!<\/p>\n\n\n\n
\n\n\n\nExecutive Summary: Key Pitching Mistakes for CPG Brands<\/strong><\/h3>\n\n\n\n
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\n\n\n\nMistake 1. Entering the Pitch Without \u2018Boots on the Ground\u2019 Research<\/strong><\/h2>\n\n\n\n
Mistake 2. Focusing on Distribution Over Velocity <\/strong><\/h2>\n\n\n\n
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Mistake 3. Racing to the Bottom on Pricing and Margins<\/strong><\/h2>\n\n\n\n
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Mistake<\/strong> 4. Overpromising and a Lack of Transparency<\/strong><\/h2>\n\n\n\n
Final Checklist: Are You Ready for Your Retail Buyer Pitch?<\/strong><\/h3>\n\n\n\n
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The Importance of Professional Coaching<\/strong><\/h3>\n\n\n\n