SM - unfair and illegal practices??

**vinj** · September 10th, 2013 09:58 AM

Originally Posted by andywesteast

A Jolliee in a strategic SM location does 150,000 sales on a weekday, and more than 200,000 on a Sat or Sun.

However, our Planning Director was studying the business model if he acquired the Jollibee franchise of a friend. Hindi rin daw kikita yung franchisee in the same way as one would think they would, yung malaki kita, commissary ng Jollibee.

**Ry_Tower** · September 10th, 2013 10:01 AM

Originally Posted by andywesteast

A Jolliee in a strategic SM location does 150,000 sales on a weekday, and more than 200,000 on a Sat or Sun.

But does SM pay for it, NO. It's the customers. Jollibee still does not take away money from SM.

**Walter** · September 10th, 2013 10:50 AM

Originally Posted by ghosthunter

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.

**Walter** · September 10th, 2013 10:52 AM

Originally Posted by K.I.L.L.

I hope they don't charge for shrinkage / pilferage too.

They also do that.

**wowiesy** · September 10th, 2013 11:02 AM

Originally Posted by ghosthunter

Somewhat true IF you agree to everything they dictate to you.

If you are smart about their offers and strongly negotiate your position, it is possible for a supplier to earn a good profit.

totoo din to.. know your business.. know your numbers... then come prepared ...

**wowiesy** · September 10th, 2013 11:04 AM

Originally Posted by vinj

However, our Planning Director was studying the business model if he acquired the Jollibee franchise of a friend. Hindi rin daw kikita yung franchisee in the same way as one would think they would, yung malaki kita, commissary ng Jollibee.

for a franchise as successful as jollibee... ang buhay talaga nila nasa commissary... so dapat kumita ang commissary...

for the branches... depends na on the location...