WWW.POPPILU.COM BLOG REPORT
by Melanie Khan
READY FOR RETAIL? SLOTTING WATCHOUTS AND WHAT TO DO ABOUT THEM OK
I admit it, I thought I knew what I was doing when launching Poppilu Lemonade at retail a few years ago. But I really didn’t appreciate the pitfall of slotting, or at least take it seriously enough to think it would be a problem for me. (Famous last words!). So to spare you the growing pains of learning about slotting the hard way as I did when launching at retail, here’s my guide on how to think about slotting and how to handle slotting that’s beyond your budget.
WHAT IS SLOTTING?
It’s the upfront pay-to-play that a lot of retailers charge. Yes, after you’ve gone through the hardship of getting noticed, being granted a meeting, making your case and impressing the category manager enough that they’re interested in taking on your brand, then you have to pay for that glorious opportunity. It pretty much sucks.
NEVER BRING IT UP FIRST
While I always want to know if there’s slotting, ask your industry peers but DON’T mention it to your category manager. Let them tell you if they have a slotting requirement. They’re not going to charge you slotting if you haven’t agreed to it.
RETAILERS’ PERSPECTIVE
Your category manager has their own P&L to address. They have an annual slotting budget they need to fill that’s
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usually an internal mandate, and if they let you in without slotting, they’ll have to make it up with another brand. So while it’s never fun to spend your hardearned capital on slotting, sometimes
it’s the only way in. Category managers are people too, of course. And many of them can be understanding that slotting is harder for the small guys than it is for the
