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Auggie

(31,982 posts)
2. +1
Fri Aug 4, 2023, 10:18 AM
Aug 2023

Start with slotting fees, then retail mark-up.

From Wikipedia:

A slotting fee, slotting allowance, pay-to-stay, or fixed trade spending is a fee charged to produce companies or manufacturers by supermarket distributors (retailers) in order to have their product placed on their shelves or within their supply chain.

The fee varies greatly depending on the product, manufacturer, and market conditions. For a new product, the initial slotting fee may be approximately US$25,000 per item in a regional cluster of stores, but may be as high as US$250,000 in high-demand markets.

https://en.wikipedia.org/wiki/Slotting_fee#:~:text=A%20slotting%20fee%2C%20slotting%20allowance,or%20within%20their%20supply%20chain.


$25,000 per item!

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