Plant Material vets its hard-good suppliers based on their online pricing strategy. If a brand allows its products to be sold at wholesale prices directly to consumers online, the company won't carry them, proactively protecting its ability to compete and maintain retail margins.

Rejection from Adidas and Puma forced Dick's to partner with an unknown Nike, which became a huge growth driver. Similarly, being strong-armed into selling apparel revealed a highly profitable new category. This shows that external constraints and unwanted demands can accidentally steer a business toward its biggest opportunities.

Jane Wurwand advises a premium food startup to avoid large supermarkets early on. Big chains demand high volume and have long payment cycles that can crush a new business. Instead, focus on small, high-end local grocers where the brand story can shine and payment terms are more manageable.

Consumer Packaged Goods (CPG) companies drove revenue through price increases, but this came at the cost of falling volumes. By pushing prices closer to the perceived value, they eliminated the "consumer surplus"—the extra value a customer feels they get. This made private label alternatives more attractive and damaged long-term brand relevance.

For premium retail brands, avoiding the temptation to discount is crucial. Lululemon's strategy to rarely offer sales, even when certain styles fall flat, demonstrates a focus on long-term brand preservation over short-term earnings boosts, a key positive indicator for investors.

The allure of massive distribution at a mass-market retailer like Walmart is a trap. It establishes the lowest possible price point for your product, which every subsequent retail partner will use as a benchmark, limiting your brand's long-term profitability and pricing power.

While intended to drive sales, frequent discounting damages brand perception by training consumers to see the brand as low-value. This creates a "deselection barrier" where they won't consider it at full price, eroding long-term brand equity for short-term gains.

For premium brands like Coterie, the choice of retail partner is a branding decision. A retailer's reputation for quality reinforces the product's own values, while a poor retail environment like a messy shelf can actively dilute brand equity.

To fund crucial investments in wages, prices, and e-commerce, Walmart's leadership, with board support, intentionally reduced its operating income from over 6% to just over 4%. This shareholder-funded investment was a deliberate, multi-year strategy to future-proof the business.