Every CPG brand reaches a point where scaling requires promotion. Retail buyers want promotions to drive volume. Distributors expect movement. Consumers are always looking for a deal. But aggressive promotional tactics can chip away at margins that are already tight. So how do you grow without sacrificing financial health?
At Come Sell or High Water, we work with brands to find this equilibrium — a place where promotions support growth without eroding long-term value.
Understand the Real Cost of Promotions
Before approving a temporary price reduction or buy-one-get-one offer, you need to know exactly what that will cost. NielsenIQ explains that brands often launch promotions without full clarity on their effect across retail partners, distribution costs, and supply chain impact.
Promotions are not just a line item. They affect logistics, cash flow, trade spend, and retailer expectations. Once you run a deep discount once, that lower price may become the new benchmark in the buyer’s mind. Plan accordingly.
Our Unit Economics Tool helps CPG operators model these scenarios before the promo hits the shelf. This allows you to decide when a promotion will lift brand value, and when it will undercut your financials.
Focus on High-Leverage Promotions, Not Just Deep Ones
Not all promotions are created equal. A twenty percent discount that drives zero incremental velocity is more costly than a ten percent off program that lifts trial in new accounts. McKinsey notes that resilient growth in CPG often comes from optimizing pricing architecture and selectively using trade investments.
Instead of blanket discounts, consider layered tactics:
• Geo-targeted digital coupons
• Sampling through retailers’ online platforms
• Bundled promotions to increase basket size
• In-store demos with limited-time incentives
These approaches allow you to engage consumers without defaulting to a race-to-the-bottom price war.
Coordinate Promotions with Your Strategic Goals
Ask yourself: What is this promotion designed to achieve? Is it to secure secondary shelf placement? Support a new retail launch? Boost short-term revenue in a lagging region?
When promotions align with business strategy, they become tools for growth, not just giveaways. Our Process builds promotional calendars around distribution milestones, retail partner needs, and financial objectives. That way, each campaign is part of a larger plan — not just a reaction to flat weeks.
Protecting Margin is a Long Game
Retailers want to see strong trade plans, but they also want dependable partners. If your promotions consistently undercut price integrity or lead to stockouts, that damages both brand equity and shelf stability.
Long-term growth requires a margin-conscious mindset. Train your team to look beyond top-line spikes and assess the true impact of promotional spend. Learn from what works. Adjust what does not. Stay flexible, but stay grounded in your margin goals.
Final Thought
Promotion should not be a panic button. It should be a strategic lever. When managed intentionally, it can introduce new consumers to your brand, support retailer relationships, and unlock growth. But when left unchecked, it can quietly chip away at your bottom line.
Want help designing smarter trade programs or stress-testing your margin scenarios? Contact us at Come Sell or High Water. We will help you grow with clarity — not compromise.