Reducing CPG sales costs without sacrificing growth is the holy grail of running a profitable business—but it isn’t easy!
Cutting costs means potentially lowering the quality of the ingredients your product’s made from or switching to cheaper packaging. These are great for your triple bottom line, but would your regulars be happy buying your products in a box that looks like it might fall apart? That’s the million-dollar question!
With that said, there are some ways to reduce your CPG sales costs without impacting business growth. Some of them rely on alternative sales metrics, while others are simply about partnering with the right people.
Read on to find out what they are!
1. Cost-Effective Distribution Channels
One of the cleverest ways to ensure business growth while lowering your CPG sales costs simultaneously is by opting for cost-effective distribution channels. That doesn’t necessarily mean going for the cheapest channel—it simply means selecting a channel that provides the best bang for your buck.
For instance, if you sell organic herbal teabags, you might get better sales by stocking your products near the cashier at a sustainability-oriented café as opposed to a grocery store. Will the potential volume of sales be lower with the first option? Yes. But will the likelihood of conversions be higher with the first option? You bet!
2. Improved Sales Forecasts
Another great way to lower your CPG sales costs without compromising on business growth is to simply create more accurate sales forecasts. The better your sales forecasts are, the more effective you’ll be at controlling your costs in a way that increases product demand simultaneously!
If you’re unsure how to go about doing this, we recommend reaching out to a CPG consulting agency that uses advanced sales metrics. They’ll help you create accurate sales projections and give you reasonable estimates regarding your company’s growth rate/potential.
3. Clever Packaging
The last method to reduce your CPG sales costs and achieve stellar business growth pertains to making better use of your packaging. For example, many CPG brands have begun to use QR codes to increase the amount of information conveyed through their packaging. This allows for the development of uncluttered and smaller yet more attractive packaging that’s conducive to business growth and cheaper to make!
Emerge Natural Sales Solutions Is Ready to Help You Keep Your CPG Sales Costs Low and Help Your Business Grow!
Do you like the idea of working with a Natural Specialty Products Consulting Agency that’ll help you select cost-effective distribution channels, improve your sales forecasts, and help you develop clever packaging? If so, we’re ready to welcome you at Emerge Natural Sales Solutions!
We’ve helped numerous clients keep their costs minimal by providing affordable business development and sales management outsourcing services. We do everything from checking labeling for shelf-readiness to helping our clients identify distribution channels that suit their business.
Message us now to find out more about our services!
