eli5, how do “store brands” work?
In: 348
One thing left out in other comments is the role of revenue smoothing. When stores buy Domino sugar and package it as Store Brand Sugar on the shelf right next to Domino, they’ve signed a contract with Domino’s manufacturer for a certain amount at a certain price, all in advance. Domino’s manufacturer gets to enjoy the peace of mind of that stable, locked-in revenue, at least until they negotiate the next contract.
Latest Answers