Velocity FAQs

General Questions

Why are you called VelocityCPG, often just called Velocity?

Simply put, Velocity is the single most important piece of product data that exists.  And at Velocity, we are crazy about data.  We have all heard “I have the best taste” or “I have the best branding” or “I have the best value” so on and so on, but if no one is buying it or your Velocity is below the category norm, who cares.  Again, it’s the most important piece of data and it is what all your customers, brokers, investors and maybe someday a brand buyer will look at.

What is Product Velocity?

Velocity tells you how many units you’re selling per point of distribution. For example, if you’re a beverage brand, you want to know how many cases you’re moving with a retailer each week. 

The average rate of velocity lets you know your overall performance so you have a sense of how many cases you should expect to move on a weekly basis.  You look at product velocity as part of a calculation: Sales = Distribution X Velocity. In other words, velocity is a true measure of consumer demand for your product.

Once on Shelf, what is next?  Velocity by Store: Spot the Highs and Lows

While average velocity is great for a high-level view, the velocity by store is where you get a more insightful look at performance. Your average velocity is most likely not evenly distributed across all stores; you’re going to have some top performers and some underperformers.  

For brand teams, the value of studying velocity on units per store per week basis helps you understand which locations are driving your velocity. For example, SLD shows that if your average velocity is 50 cases per week, your best store could be moving 60 cases and your lowest performer is at 20. The store with the strongest demand is either doing something right or their shoppers are your ideal customers. Similarly, your lowest-performing store might need to correct some missteps, or their audience might be different than the others. Whatever the case is, you want to understand what’s happening in each store and adapt accordingly. 

You can also study the momentum of your velocity. In the course of a month, you might average 50 cases per week, but it doesn’t mean each week is identical. You could be selling more with each passing week. The monthly average remains the same, but the story suggests you are gaining traction with shoppers and, once again, you want to understand why. If you see the inverse—that is, decelerating velocity—you need to understand the cause so you can course correct. 

What sets Velocity apart from other consulting companies?

Almost everyone (maybe even everyone) are seasoned and successful industry operators.  We are not just MBA graduates that think they know the industry.  We have operated, built, and sold CPG brands.  We know what it’s like to hit payroll, we know why new product development is important, we know how to work with the big distributors such as UNFI & Kehe, we know how to finance the company at different stages along the way, we know employees, we know go to market strategies, and most importantly, we know you and the stress you go through on a daily basis. 

Program Questions

What is VelocityCPG looking for in a consumer product company?  How do I Start the Discovery Program?

We look for small and medium size companies selling one or more products, with traction in the market. Products may be food, beverage, apparel, jewelry, toys, tools – anything a consumer would use. We look for innovation in a hot category – something new and better you bring to the market.

What is the Discovery Program?

In most cases, it all starts with our Discovery Program.  Our Discovery program is an eight-week course that takes a deep dive into your brand.  We will look at personnel, company structure, market data, competitors, go to market strategy, financials, product mix, and other relevant information to determine the strength of the brand and ultimately at the end an unbiased report on how we see the viability of the business, areas of strength and areas of weakness.

What is the Playbook Program?

If a brand “graduates” from the Discovery program, and we and you see a fit staying together our Playbook team somewhat monitors the more promising businesses.  Some of these deliverables include additional financial, sales, marketing, operations, and other support.  You can look at this as a very active board team.  Also, if the business needs capital, this is where Velocity can invest or help you find funding.

The other big benefit of being a Playbook member, you can state in the marketplace that you are a “Velocity Brand”.  This will give you immediate credibility with employees, brokers, retailers, investors, etc.  This will instantly give credibility to those industry peers that you are a growing brand that is being overseen by industry professionals.

What is the Runway Program?

Once the brand and Velocity team have decided the brand is ready and needs significant capital or wants to sell, the Runway team helps raise that capital or sell the business. We will recommend investment bankers to help in this process.

What is Custom Consulting?

Our custom consulting business is more than 50% of our total business.  We work with private equity on searches and due diligence.  We work with brokers to find good businesses in categories they want to get into.  And other specific projects from a brand, customer, or investor perspective.

Are There Any Other Perks?

We work with hundreds of industry partners and sponsor organizations to provide special pricing and other privileges. Additionally, Velocity regularly hosts educational and networking events. 

Will There be an Investment Fund?

Yes, we will have a fund that can invest in the brands we see the most promise.  This will usually happen between the Discovery and the Playbook programs.

How Much Equity Will I Give Up to Participate in the Programs?

Unlike other consulting businesses, we do not ask for equity for our Discovery program. If a brand graduates to the Runway program, there will be a discussion on equity, fees, deliverables, etc.  Every brand is different, and we work together to decide how the partnership moves forward.

If I’m not Located in Boulder, Colorado Can I Still participate in Velocity?

Definitely, we welcome all US (for now) brands.  It also depends on the brand, brand location, etc.  In most cases, most group meetings will be online.  With that said, we also cherish hands on communication. There isn’t an online replacement of going through a month-to-month PL, BS, and CF statement in a conference room with the brand owners and our advisors. We will work together to determine the best course of action.