A new food brand doesn't sell to shoppers. It sells to a chain of companies that each take a cut before a shopper ever sees the product. This report puts every published charge in one place, so you can price your product for the whole trip to the shelf and not just the first order.
Every number comes from a named public source, listed at the end. Where sources disagree, we show both. Where a source sells something related, we say so.
Every charge on the way to the shelf
| Retailer margin | Ongoing | Retailer | 30% to 40% on food | Montana Dept. of Agriculture |
| Distributor margin | Ongoing | Distributor | 20% to 28% | Eightx, 2026 |
| Freight allowance | Ongoing | Distributor | 7% to 12% | Eightx, 2026 |
| Promotion chargebacks | Ongoing | Distributor | 8% to 15% of sales a year | Eightx, 2026 |
| Marketing or admin fee | Ongoing | Distributor | 1% to 3% of net sales | Eightx, 2026 |
| Broker commission | Ongoing | Broker | 3% to 5% conventional, 5% to 7% emerging natural | Eightx, 2026 |
| Trade spend, all in | Ongoing | Retailer and distributor | 20% to 25% typical estimate; 45% to 50% for a new company | New Hope, 2022 |
| Slotting fee | One-time | Retailer | $5,000 to $20,000 per item | CSPI via CBS, 2016 |
| National slotting | One-time | Retailer | Under $1 million to over $2 million | FTC, 2003 |
| In-store demo | Per event | Demo agency | $300 to $700 per shift | T-ROC, 2026 |
| Multi-store demo program | Per store | Demo agency | $1,500 to $5,000 per store | T-ROC, 2026 |
Retailer margin
- When
- Ongoing
- Who collects
- Retailer
- Published range
- 30% to 40% on food
- Source
- Montana Dept. of Agriculture
Distributor margin
- When
- Ongoing
- Who collects
- Distributor
- Published range
- 20% to 28%
- Source
- Eightx, 2026
Freight allowance
- When
- Ongoing
- Who collects
- Distributor
- Published range
- 7% to 12%
- Source
- Eightx, 2026
Promotion chargebacks
- When
- Ongoing
- Who collects
- Distributor
- Published range
- 8% to 15% of sales a year
- Source
- Eightx, 2026
Marketing or admin fee
- When
- Ongoing
- Who collects
- Distributor
- Published range
- 1% to 3% of net sales
- Source
- Eightx, 2026
Broker commission
- When
- Ongoing
- Who collects
- Broker
- Published range
- 3% to 5% conventional, 5% to 7% emerging natural
- Source
- Eightx, 2026
Trade spend, all in
- When
- Ongoing
- Who collects
- Retailer and distributor
- Published range
- 20% to 25% typical estimate; 45% to 50% for a new company
- Source
- New Hope, 2022
Slotting fee
- When
- One-time
- Who collects
- Retailer
- Published range
- $5,000 to $20,000 per item
- Source
- CSPI via CBS, 2016
National slotting
- When
- One-time
- Who collects
- Retailer
- Published range
- Under $1 million to over $2 million
- Source
- FTC, 2003
In-store demo
- When
- Per event
- Who collects
- Demo agency
- Published range
- $300 to $700 per shift
- Source
- T-ROC, 2026
Multi-store demo program
- When
- Per store
- Who collects
- Demo agency
- Published range
- $1,500 to $5,000 per store
- Source
- T-ROC, 2026
The shelf math: what you keep per unit
Buyers work backward from the shelf price, so this calculator does too. Start at what the shopper pays, take out the retailer's margin and the distributor's, then your own deductions: broker, freight and trade spend. What's left after cost of goods is what you keep.
The example is set to a $9.99 shelf price and $2.50 cost of goods, with mid-range figures from the sources. At those numbers the brand keeps $0.62 a unit, about 6% of the shelf price, before paying any of its own overhead.
Your numbers
Where the money goes, per unit
- Shopper pays$9.99
- Retailer pays the distributor$6.49
- Distributor pays you$4.87
- After broker, freight and trade$3.12
- You keep, after cost of goods$0.62
The bottom line
$0.62 per unit
On a $9.99 shelf price you keep 6.2%, before your own overhead. Shelf price is 4.0x your cost of goods.
Now take the distributor and the broker out. Same $9.99 shelf price, same $2.50 cost, same freight and trade spend, selling straight to the store. The brand keeps $2.05 a unit. That's the math behind starting with stores you can reach directly.
How to lower the cost of getting on the shelf
Start where fewer people take a cut
Independent grocers sell 33% of U.S. groceries, $253.6 billion, by a 2021 study for the National Grocers Association. Many buy direct, and one person decides. That's the cheapest place to prove a product sells.
Pay for results, not for access
A slotting fee is owed before anything sells. A scan-back is paid on units that do. When a buyer offers a promotion, ask for scan-back terms. We explain the difference in scan-based trading and scan-backs.
Let someone else buy the inventory
In Spotlight Shelf, our distribution buys your product and places it in the store. You don't pay slotting. You fund marketing, promotions and scan-back credits, with campaigns from $10,000, across 10 or more stores for 90 days.
Hold your price for the whole chain
Run your own numbers in the calculator above before your first buyer meeting. If the brand keeps too little at a full distributor and broker stack, fix the price or the cost now. It only gets harder after you're listed.
Method and sources
We compiled published figures from public sources in November 2026. Ranges are what each source reported, not quotes from any retailer or distributor. Some are older: the FTC study is from 2003 and the slotting example from 2016. The trade spend figure of 45% to 50% comes from the CEO of a trade-management software company. The calculator uses your inputs and simple percentages, not any contract’s exact terms.
- 01Federal Trade Commission, Slotting Allowances in the Retail Grocery Industry (2003)
- 02CBS MoneyWatch, How grocers wring extra cash out of shelf space (2016)
- 03Eightx, CPG broker and distributor fees (2026)
- 04Montana Department of Agriculture, Selling to grocery stores: pricing
- 05New Hope Network, How brands can get their trade spend under control (2022)
- 06T-ROC, In-store demo services: complete guide and pricing (2026)
- 07Grocery Dive, NGA study: independent grocers hold 33% of U.S. grocery sales (2021)
This report is general information, not financial or legal advice.
