Comment by charcircuit
7 months ago
If a supermarket has their own store brand products it's fair to say that those products have a profit margin, even if the store could replace their spot on the shelf with a product of someone else.
7 months ago
If a supermarket has their own store brand products it's fair to say that those products have a profit margin, even if the store could replace their spot on the shelf with a product of someone else.
Sure, but if they get to keep $x per item for both own brand and other brand products, but have zero expenses for other brand products vs. having to pay to create/ship/etc. the own brand versions, you wouldn't talk about what great profit margins the own brand products have.
Plus, in this store nobody is buying any of the items, the only revenue is from the Nestlé sign above the door, which they'd earn even if they threw all of their own brand products into the bin rather than letting customers have them. So it's not an exact analogy...