There's anywhere from a 100 to 200 different types of fees that a brand can get hit with. For every single retailer or distributor that they work with, there's a fee to actually run a discount.
“There's a lot of hidden fees, what we call deductions that brands receive when they enter retail.”
Yeah. I mean, retail is a big black box for folks when they're first getting started. There's a lot of hidden fees, what we call deductions that brands receive when they enter retail. So for every single retailer or distributor that they work with, there's anywhere from a 100 to 200 different types of fees that a brand can get hit with. There's two buckets. So one is trade when imagine you're walking to a grocery store and you see a little hang tag discount. That is a fee that you then get charged that's passed through.
Why this clip
This reveals the shocking complexity of retail fees that most people don't know exists. The specific numbers (100-200 fees) make it concrete and quotable, while the counterintuitive insight that there's 'a fee to run a discount' challenges common assumptions.
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Akash Raju
1 appearance · 2 clips
What they said next
Talked over 500 brands, and deductions were just one of those things that kept coming up. Every brand wants to focus on the most important thing, which is growth. But having to spend a lot of time to actually deal with deductions.
4:24 - 26s · Origin Story
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