SM - unfair and illegal practices??

[ghosthunter]

I remember when colgate-palmolive stopped supplying to SM and for a time, you can't see any of CP's products in their shelves. A friend in told me that though in the long term, their annual sales would have gone down, they're probably in a better cash position since SM really stretches credit terms.

In regards to the Colgate issue, it was unreasonable demands from SM for shelf rental prices. It is no secret that supermarkets already charge suppliers a "rental fee" to display goods on store shelves, but the rental prices are getting ridiculous if they know your product line is categorized as a "fast moving" item.

Remember, all of that reflects in the retail prices you eventually pay at the cash register.

[wowiesy]

In regards to the Colgate issue, it was unreasonable demands from SM for shelf rental prices. It is no secret that supermarkets already charge suppliers a "rental fee" to display goods on store shelves, but the rental prices are getting ridiculous if they know your product line is categorized as a "fast moving" item.

Remember, all of that reflects in the retail prices you eventually pay at the cash register.

but for brand owners... kung may competition ka.. and you are trying to maintain a price gap between you and your competitor... there's only so much you can do para ibalik yun sa SRP ng product... sa dulo.. it will still hit the bottom line of the brand owner...

[Walter]

In regards to the Colgate issue, it was unreasonable demands from SM for shelf rental prices. It is no secret that supermarkets already charge suppliers a "rental fee" to display goods on store shelves, but the rental prices are getting ridiculous if they know your product line is categorized as a "fast moving" item.

Remember, all of that reflects in the retail prices you eventually pay at the cash register.

Actually, it was because a rival was selling Colgate products cheaper and SM wanted to dictate the selling price of other stores.