How do companies make money if their product is being sold in a retail store?

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Do they make money by supplying the goods? Or do they make a certain percentage when one of the products is sold? Say for example a pair of Adidas trainers are sold for £100 in a sports store. Would the sports store keep the £100 after selling it or would some of the money go to Adidas? Or does it not work like that at all as the product is instead bought from Adidas first and therefore nothing from the sale goes back to them. Sorry if I made this really complicated, any help would be greatly appreciated.

In: Economics

9 Answers

Anonymous 0 Comments

I guess all companies are different. I worked at a burger king, but it was a franchise meaning.. some guy owns a company called bumblebee, they give burger king 10 or 12% of the profit.. for the bumblebee can open stores with the bk logo, use bk suppliers, training, standards etc.. the store i worked at we sent our takings and costs to head office they worked out what theyre paying..

i think subways work like this alot, and recently alot of not mcdonalds owned mcdonalds aswell

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