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Costs are rising across the board, but for CPG brands, the squeeze is especially tight. Whether it’s packaging, shipping, or labor, traditional cost-cutting measures only go so far. At some point, shaving pennies off unit cost just isn’t enough.

The good news? There are still ways to run lean, meet demand, and preserve cash flow, if you know where to look.

Rethink What’s Negotiable (Spoiler: It’s Everything)

Too many founders accept partner quotes as fixed. But in CPG, everything is negotiable.

Freight and warehousing are two of the most flexible areas. Depending on the options in your area, shopping around can pay off. Collect competitive quotes and bring them to your current vendors, they may be willing to match or revise pricing to keep your business.

You can also get creative on the production side. If your co-manufacturer requires high MOQs, you may be able to bypass them by offering to finance equipment your product depends on. If they can use that equipment across clients, it’s a win-win: you lower your threshold, they gain a new machine to help them serve more customers. This is just one way to potentially lower your costs in this area.

Use Inventory Financing to Unlock Growth

Traditional lines of credit are hard to secure when you’re early-stage. Loans and grants are limited, especially in today’s climate.

Inventory or PO financing is often overlooked as a viable option when the timing just isn’t working out. It allows you to fund production or fulfill orders without draining operating cash in the short-term. This is especially useful when you’re scaling quickly but can’t yet secure capital from traditional sources.

Platforms like Bridge streamline the process by letting you apply once, upload documents, and get matched with multiple lenders who specialize in CPG and have higher approval rates. It’s a much more efficient way to get access to the capital needed to keep growing.

Dispute Distributor Deductions Like Your Margins Depend On It (They Do)

Deductions and billbacks from distributors are a reality, but they shouldn’t be a mystery.

If you’re not reviewing deductions line-by-line, you’re probably leaving money on the table. From late delivery fees to incorrect chargebacks, there’s often a case to be made for getting those dollars back. The key? Documentation.

Track everything, and review your statements with professional skepticism to make sure hidden chargebacks aren’t being slid in. If something looks off, put in a dispute. Many brands assume it’s not worth the hassle, but one clean paper trail can recover thousands. In a margin-sensitive category, that money matters.

Wrap-Up

Cutting costs doesn’t always mean cutting corners. For founders willing to negotiate, explore creative financing, and keep a close eye on deductions, there are real opportunities to operate leaner and smarter, even when the market isn’t on your side.