A consumer products company adds retail distribution and finds that each new account ties up cash for longer than expected.
This is an illustrative example describing how ProfitBooster may approach a common situation. It is not a completed client engagement, and it does not represent or promise any specific result.
The situation
Production minimums, distributor terms, trade spend, and chargebacks stretch the gap between paying for goods and collecting from customers. Growth increases the funding requirement.
Questions the founder is asking
How the work could be approached
Trace payment timing from supplier deposit to customer collection.
Categorize trade promotions, chargebacks, and slotting costs.
Compare net margin and cash timing for DTC versus retail.
Estimate working capital required under growth scenarios.
Typical deliverables
Decisions it informs
Bring your data, constraints, and priorities. We will discuss what a useful scope could look like.
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