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

They already made it when they sold it to the store.

Pepsi products are purchased by a chain. Walmart, 7-Eleven, Walgreens, CVS, whatever. The sale/profit has been made. Boom. They’re done.

The store is a reseller.

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