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7-11, Tesco Lotus Express Franchise


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My business partner looked at 7/11 from a viewpoint of getting yuor product into their stores. The fees payable were so enormous (way over 100k for a couple of small items) that it begs the question that 7/11 doesn't actually make any money from actually selling the stuff but from franchise fees and fees from new product placement.

That's how retail works. The retailers know they have a valuable asset in their shelf space and charge for placement on the shelves. The big brands are happy with the situation as they have the financial clout to maintain their market dominance.

Its the same in the UK with the supermarkets having finely graded placement fees depening on where you are in the store and whether you're at eye level for adult products or easy grab level for child orientated products with the highest fees for end of aisles in the center aisle and near the checkout

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