Navigating Deductions with Komal Devjani
In the competitive world of Consumer Packaged Goods (CPG), financial discipline can determine whether a brand scales profitably — or quietly bleeds cash. In this episode, Jason Burke sits down with Komal to unpack one of the most overlooked profit drains in the industry: retail deductions.
Deductions are often described as a “hidden tax” on CPG brands. Jason shares his early experience of receiving a major retailer payment only to discover a significant portion had been deducted with little explanation — a moment many founders know all too well. From administrative fees to shortage claims, deductions happen for a variety of reasons, and without structure, they can erode margins quickly.
As brands scale, the complexity multiplies. Managing deductions across 50 stores is one thing — across 500 or 5,000 is another. The volume of transactions alone makes it difficult to track discrepancies, and the distraction pulls leadership away from growth-driving activities. It’s not just lost revenue — it’s lost focus.
Komal breaks down the most common mistakes brands make:
Ignoring remittance statements until dispute windows close
Treating all deductions the same, rather than applying tailored strategies
Failing to create a single source of truth for promotions
Operating without a baseline to identify abnormal deduction rates
A key distinction discussed is the difference between valid and invalid deductions. Some deductions are tied to agreed promotions or documented trade activity. Others lack proper documentation and are fully disputable. Brands that actively manage this process can recover as much as 85% of disputable deductions — a meaningful impact on cash flow and working capital.
The episode also explores how technology and structured processes can automate reconciliation, improve operational efficiency, and shift deductions management from reactive to strategic.
The bottom line: deductions management isn’t an accounting afterthought — it’s a growth lever. Brands that build disciplined financial processes protect margins, strengthen cash flow, and scale with confidence.
Free Resources from this episode:
Sample Promo calendar - for manual validation
To learn more or to get a free audit of your deductions visit revya.ai
