Optimizing Trade Spend: The Final Step in the Trade Spend Maximizer Framework
Let’s dive into the final and most crucial step in the Trade Spend Maximizer Framework. If you’re not actively optimizing your trade spend, you’re leaving money on the table while your competitors reinvest their dollars into strategies that fuel their growth. With one-third of trade spend wasted every year, the brands that fine-tune their approach are the ones dominating their categories. Are you making the most of your trade spend—or are inefficiencies holding you back?
Let’s break down exactly how to take control, eliminate waste, and maximize ROI before your competitors pull even further ahead.
The Trade Spend Maximizer Framework Recap
Before we dive into optimization, let’s take a look at the other parts of the Trade Spend Maximizer Framework:
Sales Data – Organized, structured, and ready for insights.
Trade Spend Data – Aligned, categorized, and tracked for visibility.
Metrics – The KPIs that expose inefficiencies and opportunities.
Optimize – Today’s focus: turning insights into real profit growth.
This is where the best brands separate themselves from the pack.
The Three Focus Areas for Optimization
1. Cut Non-Working Trade Before It Drains More Profit
If you’re spending trade dollars on fees, fines, and admin costs instead of moving products, your competitors already have the edge. Non-working trade eats into your margins without driving sales—and the best brands are cutting it fast.
Example: Stop Paying for Unnecessary Fees
One company uncovered $100,000 in logistics fees, with half due to avoidable late delivery charges. By adjusting delivery dates before deadlines, they freed up $50,000—money they reinvested into high-impact promotions. If you’re not analyzing these costs, you’re throwing cash away.
2. Fix Indirect Retailer Inefficiencies Before They Drain Your Budget
If you work with distributors, do you know exactly how your trade dollars are being allocated at the retailer level? Without a clear breakdown, you could be over-investing in underperforming accounts—and your competitors will use that to their advantage.
Example: Reallocating Trade Spend for Maximum Impact
A deep dive into one brand’s retailer trade spend showed 40% of their trade budget was going to Sprouts, even though it only contributed 10% of total sales. The problem? Two low-performing items with excessive spoilage costs. Swapping those items for higher-performing SKUs turned a major cost sink into a profitable opportunity.
If you’re not scrutinizing trade spend at this level, inefficiencies are eating away at your profitability.
3. Take Decisive, Collaborative Action
Winning brands don’t just analyze data—they act on it, fast. Trade spend optimization isn’t a solo effort; it requires alignment across teams and retail partners.
How Leading Brands Execute Change:
Identify Root Causes: Is the issue tied to promotions, retailer compliance, or logistics?
Assign Ownership: Every inefficiency needs a clear point person for resolution.
Set an Action Plan: Whether it’s adjusting item assortments or renegotiating trade terms, there must be a roadmap for change.
Measure Results: If you’re not tracking the impact, you’re not optimizing.
The brands that take swift, data-driven action are the ones growing market share while others fall behind.
The Power of Technology in Trade Spend Optimization
If you’re still manually sifting through spreadsheets, you’re already at a disadvantage. Leading brands leverage tools like TrewUp to automate trade spend reporting and unlock real-time insights.
How It Works:
Import deductions and sales data from multiple formats (PDFs, Excel, etc.).
Instantly align and categorize trade spend data.
Get clear, actionable reports that expose inefficiencies and highlight opportunities.
The Result:
Imagine reducing a 60-page, hard-to-read report into five simple data points:
Gross Sales
Total Trade Spend
Working vs. Non-Working Trade
Spend Categories
Retailer-Level Performance
This level of clarity is what allows top brands to act fast and stay ahead.
Your Competitors Are Already Optimizing—Are You?
The brands that fine-tune their trade spend strategy today will own their category tomorrow. If you don’t act, you risk falling further behind while others capitalize on opportunities.
For a limited time, we’re offering a free trade spend health check—analyzing your data, exposing inefficiencies, and providing a roadmap for growth.
Don’t let wasted spend hold you back. Book your free health check today and start optimizing your trade spend before your competition beats you to it.
