Question 1

What's a typical retailer margin for wellness or protein bars?

Accepted Answer

It depends on the channel. Conventional grocery usually wants ~22–30%; natural and specialty retailers run ~40–50%+. Pick your actual retailer in the calculator and it fills in what brands report for that chain.

Question 2

What retail margin do Sprouts and Whole Foods expect?

Accepted Answer

Both sit in the natural/specialty band — roughly 40–50%. In the calculator, choosing Sprouts or a Whole Foods–type natural retailer pre-fills its reported margin so you can price backwards from the shelf.

Question 3

Is a $1,000 slotting fee per SKU — or per store?

Accepted Answer

Usually per SKU, per store — which is exactly what makes it dangerous. Most chains run ~$50–$300 per SKU per store; big national banners can hit $250–$1,000+ per item. The calculator multiplies it out across your store count and SKUs so you see the real number before you commit.

Question 4

What markup does a regional distributor want — 15%?

Accepted Answer

Most distributors want ~15–25%, and push toward the top of that on low-volume independent drops where the delivery economics are worse. You can set the exact number in the tool.

Question 5

When people say "50% gross margin," do you factor freight into COGS?

Accepted Answer

Yes — freight belongs in your landed cost. And even a clean 50% gross margin isn't the finish line: after distributor margin, retailer margin, slotting and trade spend, your contribution margin often lands ~10–20% of the shelf price. That's the number worth protecting.

Question 6

What's the difference between a TPR, a billback, and a scan promo?

Accepted Answer

A TPR (temporary price reduction) is a short-term shelf-price cut you fund; a billback bills you after the fact for an agreed discount or fee; a scan promo pays the retailer per unit scanned at the register. All three are trade spend — money off your margin — so budget them in, not around.

Question 7

Is a 20% margin the same as a 25% markup?

Accepted Answer

Yes — they're the same deal described from two sides. Margin is a share of the selling price; markup is a share of your cost. A $10 item that cost $8 has a 20% margin ($2 ÷ $10) and a 25% markup ($2 ÷ $8). The converter in the tool flips between them so you never quote the wrong one.

Question 8

How do you calculate retail margin?

Accepted Answer

Retail margin = (retail price − cost) ÷ retail price. A $5 item that cost $3 has a $2 margin, or 40%. For CPG that cost should be your landed cost (including freight), and retail margin is just one layer — the calculator stacks it with the distributor's cut and slotting to show your real take.

Question 9

Where do your numbers come from?

Accepted Answer

They're community estimates — figures brands report paying across 219 US retail chains, not confirmed by the retailers or distributors themselves. When a specific chain hasn't reported something, the tool says so and uses a channel average. Always confirm the real terms with your buyer.

Retail Margin & Markup Calculator for CPG

Retail pricing questions, answered

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