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> Retail stores actually buy everything they sell This is true in general, but not absolutely true. In some cases, manufacturers rent shelf space from stores,
by dempseye 5y ago
> Retail stores actually buy everything they sell
This is true in general, but not absolutely true.
In some cases, manufacturers rent shelf space from stores, then pay the store a commission for each unit sold.
Various power tool manufacturers use this model, the name of which eludes me at this moment. I think Moleskine also does it.
- gamblor956 5y agoYes, in rare cases, such as for low volume goods (or new goods with an unproven sales history), manufacturers might sell inventory on consignment through a retail store. But that is the exception that proves the rule, and suppliers go into those situations with the option of simply selling to competing retail stores.
- randombits0 5y agoYep. Then the vendor has to add the responsibility of covering “shrinkage”, as the store doesn’t care when the product is stolen, as it doesn’t belong to them!
- gamblor956 5y ago??? Vendors do not cover shrinkage, except for the rare items sold on consignment. Shrinkage losses are either absorbed by the store or handled by insurance.
- randombits0 5y agoRack jobbing means the vendor stocks the shelves, sometimes literally. The vendor isn’t paid until the item sells. That’s common for a variety of merchants. https://en.wikipedia.org/wiki/Rack_jobber https://en.wikipedia.org/wiki/Rack_jobber