Guide

Understanding Retail Investment

Navigating the world of investments in retail is a critical task, especially for startups, so let's delve into key strategies for crafting a compelling proposal that benefits both you and the retailer.

Dec 1, 2023

Navigating the world of investments in retail is a critical task, especially for startups aiming to secure a listing. Retailers often expect investment proposals, whether in the form of marketing or promotion fees. The challenge lies not just in securing a listing but also in ensuring a worthwhile return on investment (ROI).

Retailer rate cards frequently display prices reaching up to £20,000, a figure that can be daunting for many brands. To ease this process, let's delve into key strategies for crafting a compelling proposal that benefits both you and the retailer.

  1. Conditionality Matters

    Any proposed investment should come with conditions you set, such as tied to specific store numbers. This ensures a clear understanding of what you're investing in and the expected outcomes.


  2. Know Your Spend

    Avoid paying listing fees without gaining tangible returns. It's crucial to allocate funds strategically to drive Rate of Sale (ROS) and understand where your money is going.


  3. Long-term Sustainability

    Assess whether the proposed investment amount aligns with your long-term financial sustainability. Additionally, anticipate that retailers might expect increased investments over time.


  4. Optimal In-Store Marketing

    Invest in strategies that directly impact consumer behaviour in stores, prompting them to choose your product. This approach maximises the chances of product pickup and boosts ROS.


  5. Strategic Timing:

    How and when you allocate these funds can significantly impact costs. Including these details in your proposals can mitigate substantial upfront expenses and ensure better planning.

While investing for retail listings is unavoidable, these strategies serve as a foundational guide to crafting mutually beneficial proposals.

If you're uncertain about the appropriate investment amounts when engaging with buyers, feel free to reach out to us via email below. We're here to support and guide you through this process.

hello@reframebrands.com

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