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Question:

What does it mean to collect the supermarket shelf fees? Why?

What does it mean to collect the supermarket shelf fees? Why?

Answer:

In the United States, large supermarkets have shelf fees". That is, the retailer places the supplier's product somewhere and how long the vendor will need the shelves, and the retailer charges on demand. This is the first step in the shelf management process.Second, as consumers face tens of thousands of choices, most people may just look at the instructions and prices and make a purchase decision. Therefore, in a short period of time to quickly catch the eye of the customer, to promote sales of goods is very important. Retailers usually do so by placing a small container at the checkout counter, which, according to research, can increase sales by 50% to 100%. The shelves of the terminal more eye-catching, consumers are most likely to pay attention to the place, sales will be higher than the average position of 50%-100%. In addition, if it is for children's goods or food shelves, the lower the location, the more likely to sell, because the child is not tall, only visible low places.
Supermarkets put the goods in these "gold sections", which will inevitably lead to an increase in sales. Vendors are so willing to pay high shelf fees.The supplier is not a supermarket shelves fee "Exploitation", from the perspective of economics, the shelf fees to a role in screening of commodities. For those products that do not sell well, suppliers are not sure how much money they will spend on high rack charges. Can they be recovered by the increase in sales?.
Today's stores are very large, consumers enter the large supermarket, faced with about 50 thousand kinds of products, and similar products have a variety of options. At this time, consumer recognition of the product brand will be reduced, but the recognition of retailers will increase. For most consumers, the first thought is not "I want to buy a brand of products", but "this supermarket has a brand of goods, I just want to go."". Therefore, the actual customer is the supermarket, not the supplier (brand), and in dealing with suppliers, the supermarket is very strong, and can also be profitable.

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