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Building your plan - 6.1 What should I think about before building Margin Support Funding?

Written by Stephen Wood

Margin Support Funding is a financial investment into the retailer model, not a shopper-facing mechanic.

Key considerations:

  • Purpose of the funding – what are you supporting?

  • Retailer margin impact – how much value is being transferred to the retailer

  • Pass-through expectation – whether the retailer is expected to reflect this in shelf price

  • Total cost – driven by unit volume and funding level

  • Scope of SKUs – which products the funding applies to

This type of funding directly affects:

  • Supplier NSV (Net Sales Value) (reduction)

  • Retailer gross margin (GM) (increase)

It does not directly drive volume, unless combined with other activity.

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