I just released a new episode of Product: Knowledge that might save you from one of the most expensive mistakes product makers can make.
Here’s the scenario I see over and over:
A brand builds impressive traction selling direct-to-consumer.
They crush it online.
They’ve got stellar reviews.
They’re handling fulfillment from their garage or a small 3PL.
Then comes the call they’ve been dreaming about: Target/Walmart/Whole Foods wants to carry their product!!!
Cue the champagne…
Followed shortly by panic, logistics nightmares, mass product returns and often financial disaster.
Womp, womp.
Why do so many promising products implode during this transition?
That’s what my conversation with Paul Jarrett digs into. Paul is the co-founder and CEO of Bulu, and he and his cofounder Stephanie have created a solution for exactly this problem — enabling brands to ship both B2B and DTC from a single inventory source.
What I love is Paul’s candor about when brands should (and shouldn’t) make the leap to retail. It’s not always the right move, and the timing is critical.
“Most founders severely underestimate the cash flow requirements of retail,” Paul told me. “You’re paying for inventory months in advance, then waiting months to get paid. I’ve seen retail be the kiss of death for some of the best products.”
This episode is packed with practical wisdom for product makers contemplating that DTC-to-retail leap:
- The hidden costs that wipe out retail margins for unprepared brands
- How to build relationships with retail buyers the right way
- Why inventory visibility becomes your make-or-break factor
- The three essential steps before even considering retail expansion
Watch it on YouTube!
Product Payoff: Smartfood Popcorn created its direct-to-consumer system specifically as a testing ground for retail flavors and packaging. This approach allowed the brand to gather real customer data to present to retailers rather than just making assumptions. When Smartfood expanded to national retail in 1985, it had concrete evidence of market demand, helping achieve $36 million in sales before being acquired by Frito-Lay — who maintained this test-and-learn methodology while scaling the brand to over $500 million annually.
Action for today: If you’re considering a retail strategy for your product, honestly assess your operational readiness, not just your product’s appeal. Can you HANDLE the inventory demands, payment terms, and logistics complexities? Most importantly, do you have systems that give you total visibility into your inventory across all channels?
Want to discuss your DTC-to-retail strategy? Tap that reply arrow, and let’s talk about whether your product and operations are truly retail-ready. Or reach out to my team of multi-channel strategy experts at Graphos Product.
Listen to the full conversation with Paul Jarrett on the Product: Knowledge podcast wherever you get your podcasts, or stream it at GraphosProduct.com.