# #273: Retail Pricing 101 with Matt Merson

- Show: [The Startup CPG Podcast](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast)
- Published: 2026-11-03
- Length: 53m
- Episode: 396
- Page: https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2026-11-03-273-retail-pricing-101-with-matt-merson
- Listen: https://share.transistor.fm/s/bcee5ffb

## Summary

Matt Merson, President of Once Upon A Coconut, and host Daniel Scharff discuss retail pricing strategies for CPG brands, emphasizing the importance of 'price sloping' across channels and maintaining a path to 50% margins. They detail how to conduct day-one store checks, model costs at scale (10k to 1M units), and navigate the 'pocket price waterfall' including retailer margins, distributor markups, and trade spend. The conversation covers specific tactics for working with distributors like KeHE and UNFI, choosing between off-invoice and scan-back promotions, and handling price increases with buyers like Kroger.

## Outline

1. Introduction: Matt Merson and Once Upon A Coconut
2. Strategic Pricing: Price Sloping and Long-Term Channel View
3. Day-One Research: Store Checks, Magic Price Points, and Competitor Analysis
4. Modeling Costs at Scale: COGS, Tolling, and Volume Assumptions
5. The Pocket Price Waterfall: Retailer Margin, Distributor Markup, and Trade Spend
6. Promotion Mechanics: Off-Invoice vs. Scan-Back with KeHE and UNFI
7. Logistics, Freight, and Pricing Tiers
8. Handling Price Increases and Buyer Negotiations

## Topics

- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)
- [Retail, wholesale & distribution](https://hardwarepodcasts.com/topic/retail-and-distribution)
- [Crowdfunding & preorders](https://hardwarepodcasts.com/topic/crowdfunding)

## Most relevant to

early-stage companies, companies scaling up

## Mentioned

- Once Upon A Coconut (company)
- Dannon (company)
- Sara Lee (company)
- Coca-Cola (company)
- Glaceau Vitaminwater (company)
- Mars Chocolate (company)
- Whole Foods (company)
- Costco (company)
- KeHE (company)
- UNFI (company)
- Nielsen (company)
- Circana (company)
- Kroger (company)
- Red Bull (product)
- Startup CPG Retail Tracker (tool)
- NIQ Byzzer (tool)

## Related episodes from other shows

- [Advice Line with Daymond John of FUBU](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-08-27-advice-line-with-daymond-john-of-fubu) (How I Built This)
- [Questions on Outsourcing, Distribution Channels, and the Cost to Market](https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2020-04-27-questions-on-outsourcing-distribution-channels-and-the-cost-to-market) (Predictable Designs Podcast)
- [Advice Line with Pete Maldonado of Chomps](https://hardwarepodcasts.com/podcast/how-i-built-this/2024-05-02-advice-line-with-pete-maldonado-of-chomps) (How I Built This)
- [Advice Line with Mark Ramadan of Sir Kensington's](https://hardwarepodcasts.com/podcast/how-i-built-this/2024-06-27-advice-line-with-mark-ramadan-of-sir-kensingtons) (How I Built This)
- [Advice Line with Sarah Kauss of S'well](https://hardwarepodcasts.com/podcast/how-i-built-this/2024-06-20-advice-line-with-sarah-kauss-of-swell) (How I Built This)

## Citing this page

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