What do you mean by charging supermarket shelves? Why
Supermarkets are putting commodities in these "prime locations", which are bound to increase sales. Suppliers are willing to pay high shelf costs. Shelf fees are not a "peel off" for suppliers, which, in an economic sense, can be used to filter goods. For those that do not sell well, the suppliers simply do not have the money to invest in the high shelf space, and can't recover from the growth of sales.
With consumers facing tens of thousands of options, most people might just look at the instructions and prices and make the purchase decisions. So it's important to grab the customer's eyeballs quickly and sell promotional items quickly. Retailers typically place a small container in the place where the cash register is located, according to research, which can increase sales by 50% to 100%. The end of the shelf is more visible, where consumers are most likely to notice, and the sales will be 50-100 per cent higher than the average. In addition, if it is a shelf for children's supplies or food, the lower the position, the easier it will be to sell because children are not tall enough to see only low.
Today's stores are very large, and consumers are facing about 50,000 products after they enter a large supermarket, and there are many options in their products. At this point, consumers' recognition of product brands will be reduced, but the recognition of retailers will increase. For most consumers, it's not "I'm going to buy a branded product," but "I'm going to have a brand in this supermarket." Therefore, it is the supermarket, not the supplier, that actually owns the customer. In the relationship with the supplier, the supermarket is very strong and can make a profit. In the United States, large supermarkets have "shelf costs". That is, retailers are putting suppliers' products in a place where they need a long shelf, and retailers charge for it. This is the first step in the shelf management process.
