pod293 Archives

27 01, 2026

The Promo Mistake That’s Draining Your Runway
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The Promo Mistake That’s Draining Your Runway

Distribution Expansion, Podcast, Video

The Promo Mistake That’s Draining Your Runway

By Daniel Lohman, CPSA|2026-02-05T20:12:45-07:00January 27th, 2026|Distribution Expansion, Podcast, Video|

Roughly 25% of your gross sales go to trade spend—and most brands have no idea if it’s working. In Day 21 of 30 Days to Profitable CPG Growth, I break down how to measure the true value of promotions so you stop burning cash and start extending your runway. Learn how to separate promo [...]

Promotion Efficiency Calculator - How effective is your trade spending?

Hover over the question marks below:

Annual Gross Sales

% Trade Promotion Spending 25%

Sales % Trade Promotion Spending $

% Promotion Efficiency Improvement 10%

Annual Trade Promotional Savings $

What could you do with the additional $$,$$$?

Now, let’s give you the tools and resources to make this a reality!

Promotion Analysis Tool Lite (Trade Promotion ROI Calculator)

Event Name

Event Detail

Trade Spending

Volume

Event Date

Fixed Costs

Item Incremental Units

Event Weeks

Menu Cost

Item Base Units

Case Rate

Miscellaneous Cost

Brand Incremental Units

Units Per Case

Consumer Cost

Brand Base Units

Feature Promoted Price

In-Store Demo Costs

Item Incremental Dollars

Average Retail Price

Off Invoice Case Rate

Item Base Dollars

Avg. Event Scan Price

Bill Back - Case Rate

Brand Incremental Dollars

Total Cases Shipped

Scan Down Rate Per Unit

Brand Base Dollars

Calculations

Price Discount %

Event Sales $

Item Unit Lift

Base Cases

Incremental Sales $

Item Unit Lift % %

Incremental Cases

Margin %

Brand Unit Lift

Total Event Cases

Event Profit $

Brand Unit Lift % %

Cost Per Incremental Case $

Item Dollar Lift $

Cost Per Shipped Case $

Forward Buy Cases

Item Dollar Lift % %

Total Variable Costs $

Lift (Incremental % of Base) %

Brand Dollar Lift $

Total Trade Spending $

Net Unit Cost $

Brand Dollar Lift % %

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First Name *

* Save each scenario to compare pre-event to actual event performance. Run as many different scenarios as you want. The goal is to reduce costs and maximize longterm sales. Look for opportunities to improve promotion performance. Refresh the screen to create another scenario. Make sure to respond immediately to my email confirmation (if you don't see it, double check your junk or spam folder). Privacy Policy: We hate spam & promise to never share your email.