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Some marketers think that slotting allowances are forms of bribery, which inhibits the introduction of new products, especially from small businesses. However, retailers argue that these fees are necessary compensation for taking on the risk of introducing new products that require valuable shelving, employee training, and other resources, even though the product may live a short life in the market.
The cost of slotting allowances varies dramatically, ranging from a couple hundred dollars in one retailer's location to over $50,000 in a chain of retail stores. Even though retailers defend the charges as a necessary cost, some businesses believe that the fees are going directly into the retail companies' net profit...
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Common topics in this essay:
- Alderson Products Inc
- air products
- Byte Products
- New Products
- New products - the secret of success or failure
- Products
- Slotting Allowances
- Tesco products
- Avery products
- What are products
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- Good Products, Bad Products
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- Byte Products, Inc.
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