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Are Slotting Allowances Efficiency-Enhancing or Anti-Competitive? Abstract Slotting allowances are lump-sum payments by manufacturers to retailers for stocking new products. The economic rationale for slotting allowances is controversial. Some argue that slotting allowances are efficiency-enhancing; others argue that they are anti-competitive.
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slotting and expanding This article possibly contains.
Please by the claims made and adding.
Statements consisting only of original research should be removed.
August 2015 A slotting fee, slotting allowance, pay-to-stay, or fixed trade spending more info a fee charged to produce companies or slotting and expanding by distributors retailers in order to have their product placed on their shelves.
The fee varies greatly depending on the product, manufacturer, and market conditions.
For a new product, the initial slotting fee may be approximately 25,000 per item in a regional cluster of stores, learn more here may be as high as 250,000 in high-demand markets.
In addition to slotting fees, retailers may also charge promotional, advertising and stocking fees.
According to an FTC study, the practice is "widespread" in the supermarket industry.
According to retailers, fees serve to efficiently allocate scarce retail shelf space, help balance the risk of new product failure between manufacturers and retailers, help manufacturers signal private information about potential success of new products, and serve to widen retail distribution for manufacturers by mitigating retail competition.
The use of slotting fees slotting and expanding, in some instances, lead to abuse by retailers such as in the case where a bakery firm was asked for a six figure fee to carry its items for a specific period with no guarantee its products would be carried in future periods.
The same practice is common in as well, as far back as the mid-nineties.
In some countries, e.
Retrieved on August 1, 2006.
Retrieved on August 1, 2006.
Retrieved on August 22, 2012.
By using this site, you agree to the and.
Wikipedia® is a registered trademark of thea non-profit organization.


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