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Podcast: Startup To Scale
Episode: 98. Breaking Down Distributor Deductions and Chargebacks
Description: Distributor chargebacks collectively cost brands millions of dollars per year. Most of these are in the distributor agreement, but many of them are erroneously charged to brands, and it’s up to them to contest it.When I ran my brand TeaSquares, in 2019 we invoiced KeHE for $32,000 worth of product at our wholesale cost. After all the deductions and fees, we were paid out $21,000. That’s an $11,000 difference, with $8,400 of those fees because of a poor retailer relationship.Today’s conversation is all about pulling the vail back on deductions and how you can effectively manage...