Thread: Jars and Lids
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Ted Mittelstaedt Ted Mittelstaedt is offline
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Default Jars and Lids


"Melba's Jammin'" > wrote in message
...

>
> It's called a slotting fee and comes because there is a finite amount of
> space in a supermarket or store and it's all about the bottom line.
> Profit margins, I understand, are pretty slim for grocers so if they're
> going to make space available for an un-tried item, I guess they want
> compensation for it. Too bad it has to be like this. It is done here.
>


Whole Foods has long championed the fact that they do NOT accept
slotting fees - product placement on their store shelves is purely due
to customer demand of an item.

Only the larger grocers who order huge amounts can demand slotting
fees, so your small independent corner grocer likely isn't getting any
of that pie. But, no grocer can demand slotting fees for high-demand
items with strong brand identity, such as Coca Cola. Coke and Pepsi
can pay other ways, though. For example the local Haggen's here carry
both Coke and Pepsi - but, only Pepsi products are in the cooler that
is next to the deli counter. So if you go buy a sandwitch there and want
to drink Coke you have to walk the entire length of the market to the
other end of the store to get it, then walk back to where the tables are.

Ted