how come soft drink companies have their own people set up displays in supermarkets and gas stations, instead of the workers having to put it out like the other products?

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how come soft drink companies have their own people set up displays in supermarkets and gas stations, instead of the workers having to put it out like the other products?

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Anonymous 0 Comments

There is a concept pioneered by many of the fast moving consumer goods companies especially soft drinks called “vendor managed inventory” where the supplier decides how much and what mix stock is held in stores. Sometimes even prices. The companies are essentially renting shelf space. Retailers would get in a lot of trouble for colluding on deals and sale timing. But the vendors can know if store A is having a big sale on something influenced by sales then store b is likely to not sell as much. The total soft drink sales in an area is pretty steady but the mix by stores can vary a lot. The biggest and most powerful retailers Walmart, Costco, Target have pushed back on these things because it gave the most information and power to the suppliers but smaller places it is a good arrangement for maximizing total sales.

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