What are the slot permits?

Slotting, applies to fees that suppliers pay for a certain type of preferential treatment from their distributors. There are a number of advantages that suppliers can receive from paying a slotting allowance, such as the location of their eye level or the opportunity to introduce new ones. This practice is widely used in the food store industry. The need for these fees is supported by the risks and costs associated with the storage of shelves in the store and replace unsuccessful products with new products. Many of them do not realize that Slotting contributions relate to practice where suppliers pay distributors to take some type of measures. The prevalence of this practice varies considerably. Some distributors may require some suppliers to make these payments or require these fees for certain products. In other cases, suppliers can offer the payment of allowances on the slot to motivate trade to invest in a new product, placing the product in the main SMSta on shelves or motivating a distributor not to let the product out of its supplies. Instead of a decision that is taken on the basis of the entire industry, fees are often negotiated by a case. Different suppliers can be charged different fees and it is even possible that one supplier may be subject to different charges for different items.

food stores tend to function differently than many other retail devices that affect the shipment. On the contrary, grocery grocery stores include significantly greater risks because shop owners buy their goods directly. Any goods that are not sold or must be deeply discounted, results for loss for food store owners. The annual failure rate is generally high and promotes the need for slots in this industry.

These posts allow the trade to cover their costs. In addition to help compensate for the financialLosses, fees paid to suppliers also help cover other categories of expenditure, such as the cost of setting up display and the use of work to remove unsold products from shelves. Other costs associated with obtaining, selling or exchange of product include warehouse storage, programming new items to retailers' systems and producing new shelves.

There are debates on justice permits on the slot. It is generally argued that this practice is anti-competing because large suppliers have an apparent advantage. Some small suppliers cannot afford to pay these fees at all. This can prevent their products from certain shops or can prevent them from getting preferential locations on the shelves.