EP63: COGS - The Secret Fuel Behind Explosive DTC Growth

In this episode of the ASOM Pod, hosts Jimmy Kim (CEO of eCom Email Marketer, formally Founder of Sendlane) and Bryan MacDonald (Direct of eCommerce at Oma’s Pride) sit down with Will Nitze, CEO of IQ Bar, to unpack how he scaled from a scrappy eCommerce start-up to landing on shelves at major retailers. Will gets real about the limits of staying DTC-only, the strategic bets that helped IQ Bar break into brick-and-mortar, and why obsessing over COGS and operations is just as important as marketing. From Harvard neuroscience to entrepreneurship, his journey is packed with insights on product development, retail partnerships, and the messy reality of scaling in food and beverage.What you’ll learn in this episode:Why DTC is powerful but not always enough to scale.How Amazon can be a stepping stone to retail deals.The critical role of COGS and operational efficiency in growth.Lessons from landing CVS and navigating retail complexities.The future of IQ Bar with new product lines in hydration and coffee.Whether you’re building your first CPG brand or plotting your move from online to in store, this episode gives you the inside scoop on growth, grit, and the real costs of scaling._____Big shoutout to our sponsors who make this podcast possible!Omnisend — With 125,000+ eCommerce merchants, Omnisend is the all-in-one email & SMS marketing platform built to deliver seamless, personalized experiences via email and sms with ease. Learn more at https://www.omnisend.com/LiveRecover — Live Agents for eCommerce — Get more out of your revenue strategy with real-time SMS engagement and sales recovery for higher ROI. Learn more at https://www.LiveRecover.comKintsugi — AI that monitors, files, and optimizes sales tax for you. Eliminate your tax headaches forever. Mention ASOM for 3 months free at https://www.TryKintsugi.comSubscribe at https://asompod.comCome hang out with us IRL - https://commerceroundtable.com_____00:00 Teaser Trailer02:30 Meet Will Nitze: From Neuroscience to DTC06:53 The Birth of IQ Bar10:50 Challenges in Food and Beverage Industry19:28 Navigating Product Trends and Market Fit22:13 Funding and Growth Strategies26:19 Outsourcing and Company Structure30:53 Early Distribution and Product Strategy35:14 Securing a Major Retail Deal36:15 Challenges of Scaling Production37:03 Lessons from Retail Experience38:41 eCommerce vs. Retail41:21 Importance of Cost Optimization45:21 Innovations in Packaging and Fulfillment48:01 The Role of Operations in Marketing51:26 Navigating the Convenience Store Market54:19 Future Growth and Expansion Plans01:02:55 Challenges of the Convenience Store Market01:07:53 Conclusion and Final Thoughts___Follow Jimmy Kim at: X:  https://www.twitter.com/yojimmykim Linkedin:  https://www.linkedin.com/in/yojimmykimIG: https://www.instagram.com/@yojimmykim Tik Tok: https://www.tiktok.com/@yojimmykimFollow Bryan MacDonald at:X: https://www.twitter.com/bryanomasprideLinkedIn: https://www.linkedin.com/in/bryan-macdonald-ctIG: https://www.instagram.com/@anythingbutasaladTik Tok: https://www.tiktok.com/@anythingbutasaladFollow John Roman at: X: https://www.twitter.com/@JohnMRomanLinkedin: https://www.linkedin.com/in/john-roman/IG: https://www.instagram.com/@johnnyromesTik Tok: https://www.tiktok.com/@johnmromanFollow Amer Grozdanic at:a X: https://www.twitter.com/@AmerGrozdanicLinkedin: https://www.linkedin.com/in/amer-grozdanicIG: https://www.instagram.com/@amergrozdanicTik Tok: https://www.tiktok.com/@amergrozdanicContact us at [email protected] for sponsorships, appearance requests, interviews, or general information!#asompod #businesspodcast #businessinsider #entrepreneurship #entrepreneur #ecommercepodcast #ecommerce #ecommercebusiness #ecom #dtc #dtcpodcast #ecommercetips