Episode 81
Why Small-Batch Makers Lose Margin in Traditional Retail Channels
The 50% Distribution Margin Problem Facing Small-Batch Fixture Makers
About This Episode
Most handmade lighting brands don’t fail because of design — they fail because of distribution math.
In this episode, Avner Ben-natan of Light Texture explains why selling through traditional retail channels doesn’t work for small-batch fixture makers. With retailers taking up to 50%, the choice becomes simple: double the price or lose the margin. Instead, Light Texture chose a direct-to-consumer model, keeping control over pricing, production, and customer relationships.
This is a conversation about channel economics, manufacturing constraints, and why some product companies must avoid wholesale to survive.
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