Liquid Opportunities / Commercial field notes
Map the channel
Start with a proposed shelf price and work backward through retailer and distributor requirements, freight, allowances and your cost of goods. Specify whether each figure uses margin or markup; the distinction changes the answer.
Use consistent units
Put every assumption on the same basis: per unit, per case and the same pack format. Separate ongoing costs from one-time launch costs.
Stress-test the assumptions
Review the impact of freight changes, promotional activity, production runs and inventory. A useful model shows where the business has room to move.