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
It’s also possible that a retailer may stock their product and pay the manufacturer based on actual sales, they return anything unsold. It is not common but it happens in new product categories where the retailer doesn’t want the risk, so manufacturers take it.
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