Thursday, September 04, 2008 2:20:52 AM
The large chains charge the product company a healthy fee for their shelf space placement privilege. We would call it blackmail, but the companies just look at it as the cost of doing business, and pass the cost on to the customer. The cost can be steep until you get popular enough that the store, or chain, needs you to compete (think brand names like Campbells soup), then the fee can get more reasonable, or go away completely. The problem is that the store has to gamble that it can match, or exceed the earning potential of the item it replaces.
The other factor against you in the GS is the type of shopping attitude of the customer; NOT an impulse buyer, list in hand, budget to the forefront of the mind, blinders on to anything but their choice items. They know exactly what they want, and where it is. If you are in the corner, they won't even know you are in the store. If we are in the lineup with the brand name products, what will make them pick up, and try, our product first?
The 24 hour gas station/corner convenience store, visited by the impatient for those quick needs, like bread, milk, and beer, gives a much better chance of the product being seen by the impulse buyer simply because of the smaller amount of competing items.
In the big store market I would think we would have a better sales opportunity with stores like Lowes, Home Depot, or ACE Hardware, and of course WALMART. But those stores could have placement fees also, I don't know about them. GLTA LC
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