The hidden war over grocery shelf space
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- čas přidán 21. 11. 2016
- There's a hidden market in the supermarket - Vox's Phil Edwards explains.
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I worked as an overnight shelver at superstore in Canada for a bit, and being the person that physically puts the products into the slots they pay for is nerve-wracking. In fact, food companies would send representatives to the store to check if we had put their product exactly where they wanted it. And next time you're looking at the price for oreos, look at the price tag on the shelf a little closer. There will be a 'f1' code, meaning 'face this number of objects', which is how many products are meant to be facing the front of the shelf. Sometimes there are f7' or f10' rows, and it made me go 'fuck that!" every time, having to squeeze every product as close as I could without it falling off. My old co-worker described it as mini real estate, and that is so accurate.
Planagrams are an absolute nightmare if your running a smaller than average store from a big corporate chain. You have to carry around a huge printoff everyday of every stupid little change that someone on high has decided has to take place during the precious moments before a store opens. All the designs are for average stores, and there is never enough space for everything so hard decisions have to be made. Then a brand representative or a regional manager makes a surprise visit and writes up your store in failing despite the fact that they are requesting a literally impossible demand. Eventually you learn which products nobody checks on but it seems absurd that someone is getting payed very well to sit in a office "designing" something that whilst looking nice to the manufacturers has little to no bearing on implementing such designs into the real world.
@@cattysplat its called money everyone wants it so they'll lie to big companies even if its impossible to implement in real life. They dont care they just want money and leave you to deal with it like every other job in the world
OI U BETTER PUT MY STUFF THERE PROPERLY OR ILL GET U
i know what exactly what you mean, my family owns convenience stores and when we get big brand products the supplier comes in to check if it is displayed properly and with advertisement that is meant to be displayed.
Same I worked at Kroger and people would come in to take pictures of items. I thought they were apart of Kroger but I know realized they were sales reps
I keep thinking the video is over but it keeps going
and then it is over and you continue binge watching these random videos
Just like the last Lord of the rings
Yep.
Lol same
I keep thinking you are the One True King of the Seven Kingdoms.
"with generic bits"
yup, that's my new motto.
Cookies and cream "It is also a type of ice cream"
"Slutting fees"
Gretchen Trouble A
ok
you can eat it with your mouth
So VOX just made me weigh the ethical concerns of buying ice cream.
Ionlymadethistoleavecoments not just ice cream, what they said is true for every kind of product.
The profit margins must be razor thin at this point. =(
They already have to pay a lot to develop, produce, package, and market their food but also to even get them allowed on store shelves?
I like Whole Foods and Costco's approach of testing out different products on store shelves for free. Let consumers and sales determine if your product is good enough, not how much you're willing to "bribe" the grocers.
there are a lot more obvious one with most of it given the dairy industry lol
They don't make you do anything ✌🏼✌🏼
buy online, although even online some brands pay to be put at the top of the list
the face on the model of generic ice cream is glorious.
i love this channel cause honestly they report things i didn't even know existed
These are the vox videos that made me sub in the first place.
thier other videos are just as good and well as this its just u when u do not like a subject u get defensive and see thier point less or ignore it .
C4nadian agree with you
No, because if they made a video praising Reagan and saying nothing bad about him I'd be just as mad. Bias is wrong no matter who it's supporting.
Mugen 10/10
+C4nadian funny you should say that... Because i just subbed after watching this one....
wow vox, you didnt state that you were sponsored by generic, im disappointed
Clide Gearden what are you talking about
mukhtar yusuf It's a joke about how some CZcamsrs get sponsored by companies in exchange for showing their products. Here, Vox has shown a product by the fictional Generic brand.
“Only truly amazing people can see the quality of generic brand. It is so generic that it’s not generic”
- some basic white name
@@mukhtaryusuf3228 r/woosh
@@mukhtaryusuf3228 r/ woooosh
i love this channel cause honestly they report things i didn't even know existed
@nothere_2017 Not everyone goes to marketing school, dear.
Wait...so when i pick something from a shelf and 10 mins later i decide i dont want it so i leave it at a random shelf am i commiting a crime?
srba filipovic dang...
You're committing a war crime.
yes a federal felony
skomrex jebacina no, just pissing off people like me who have to clean up after you.
lol you guys are hilarious
This is why I subscribed to Vox
Groden same nothing biases about this
Vox subscriber logic
factual political video=biased
non political video=factual,non-biased
there will always be facts and evidence for both sides of an argument. Vox tends to lean democratic which can be annoying if its constantly in your face
Or maybe Democrat's views are more nearly correct and consistent than republican's. There's a right and a wrong; Republicans get angry when the facts are brought up and call it "bias", no it's just the truth.
there is no right or wrong when it comes to politics. every one has to come to thier conclusion based on the represented facts. and when your only feed information to make lean in a certain directions there's a problem. I have no problem with hearing facts that question my stand and vice versa. thats why its annoying when vox only posts pro democrat anti republic videos because there significant problems with both sides
"made by Walter White foods" lol
PRAISE THE LAB
Cody'sLab blech
Walter's special Crystal-clear blue cotton candy Ice cream.
You could say that ice-cream is quite *addictive*
(So delicious) It’s vegan ice cream it’s actually good
no wonder all the ice cream at the grocery store sucks. It's not a competition for the best ice cream, but a competition to see who can afford the shelving space.
I was just thinking that exact thing.
Maybe you didn't buy ice-cream. Happened to me - I was wondering why the ice-cream tasted weird and almost too creamy - then I looked on the package and saw "frozen dessert". Not one place did it say "ice-cream" - probably for legal reasons.
Ahold has this cheap generic brand called Guaranteed Value that they stock in their Stop & Shop and Giant stores and while the packaging is atrocious (looks like something out of a Soviet post apocalyptic society) the ice cream is really good. It's the cheapest ice cream you can get by weight and they stock it all the way at the bottom, but the quality is comparable to any well known ice cream brand. idk why it's so hard to shake the assumption that name brand = superior, but if we could all rid ourselves of that notion we'd save so much money.
@James Currie Sure they do...They voted for Trump. You MEMBERRR???
@James Currie Lmfao...It was a joke
What can I do to get my face on your generic icecream?
Keerthana Gurushankar You need to look generic
Keerthana Gurushankar At the Generic Store in Generic Town in a Generic Country who is located on a generic planet.
Keerthana Gurushankar lmao, You look like a Hindu Octavia Spencer
Your Neighbor In a generic universe
OverLordthe 1st lol! I googled it .
I wish at the end they would do a quick run down on what it's like in different countries.
I'm afraid to say, thats it's almost the same... at the end is just money A BUNCH OF IT, and if a store is getting a lot from it, it will continue...
It’s probably the same for a lot of countries.
I don't care where the ice cream is placed, I will find blue bell and buy it.
-with Generic bits
-it is certainly a type of ice cream
-it tastes OK
Hey, that's pretty OK
It’s pretty fine
It is a food that you can insert in your mouth at will, certainly. (2nd box quote, this stuff is hilarious!)
War...... war never changes...
Another settlement needs your help. Here, I'll mark it on your map.
Heh you didn't invite me to the party :(
Nice 1
While Walmart doesn't charge slotting fees (anymore), they do use their clout to force other large corporations to bend to their will.
A notable instance where they attempted this was with Little Debbie a few years back. McKee Foods (Little Debbie's parent company) uses a (somewhat antiquated) DSD system of independent delivery drivers, each one operating their own small business.
Some time ago, Walmart began a push to bring as many companies into their direct-ship model (McKee sells to Walmart, who then takes over the distribution to their stores, cutting out the middle man).
McKee flatly refused- as doing this would destroy thousands of their distributors primary income. Walmart retaliated by demoting Little Debbie to the bottom shelves, and bringing in more competition- trying to force their hands by strangling their income.
They failed to force McKee's hand in this particular case, but the income for many distributors I know personally took an enormous hit- sometimes up to a third of their income- due to these (and similar) practices.
Nathanael Crawford contextual
Walmarts don't do this for all their products, I've worked for a logistics company that contracts small trucking companies to bring shipments of Colgate products to Walmart locations in the last year
A DSD is different from a trucking company carrying the product to the store. A DSD(Aka a vendor) owns the product and sells them to their group of stores(aka a "route). Its akin to a franchise owner of a restaurant.
DSDs also stock the product themselves and work with the stores to coordinate displays.
Wow, I had it so backwards. I thought the grocery stores bought food from vendors at a whole-sale price and then sold to consumers for a profit. I had no idea the grocery stores taxed the vendors to even hold their products. Crazy!
I suddenly have a craving for Generic Ice Cream...
Branding.
lol
"It tastes OK." ™
Food delivery is discouraged and the long-gone milkman used to deliver all kinds of other food. They want you in the store because you'll probably buy impulse items. The store is organized in a way to get you walking through as much of the store as possible.
Why is food delivery discouraged? I used to until I became a student and couldn't afford it anymore.
You can still get food delivery but it's not something you see from grocery stores. The money is made from impulse purchases. it's why the oil and the peanut butter are in the coffee aisle and not the cooking and jellies aisle, respectively. They want you in and rolling past all the extra junk. Getting essentials requires a mile walk through bakery village and deli town, etc.
I wish there was more food delivery again because well it makes more jobs especially for young folks.
+Dragonborn
Near future delivery (including food) will be done by drones controlled by AIs.
yep, this is why I shop online, I don't care about marketing I care about the nutrients of the food I buy and the price
How much did grey poupon have to pay in slotting fees?
JesseLH88 oh shut
5 million to put candy in front of a store!? Dam I need that in front of my house
sportster1988 omg that's awesome as hell. I couldn't eat a whole pack of M & Ms at once but I eat on them all day and will eventually eat a dozen packs lol. that is bar far the best place for candy in a store, kids will yell and scream for it and EVERYONE looks. just like with the little bags of jerky. I wonder how much they forked out for that space? it wasn't always there
It's not worth it... the amount of idiots that you will attract is limitless.
Not really capitalism if there is zero competition
you can't have a real capitalism with multinational corporations. this is the global economy, not 'capitalism'.
America's the biggest hypocrite I know. Explains why a "communist" country like China is doing a lot better and with Trump coming into office, well let's just say things aren't going to get any better.
china isn't a communism... never has been, its always been totalitarian, still is now with similar overtone as the US. behind the scenes control giving people the illusions of choice. Also, is much more complicated than that, china isn't doing 'better' really. the global economy is a mess right now, has more or less been that way since 07-08
There is competition. Which is roughly an unfair competition where the small guys have to put a lot of money against the big guys, that also put a lot of money.
Is there anything more capitalistic than that?
China depends on demand from our economy lol
It's like gang territories
Be careful you don't throw up signs in the wrong aisle
Anti Cancerous
West siiide!
Bruce Dunn West Side
Ayyyyyyyy
Anti Cancerous lmao
kilroy was here
I know this very well thanks to Shark Tank
which episode
ilker yoldas was just thinking this haha
sigurd sigurd All of them. They bring it up constantly. It's a huge hurdle
ilker yoldas me too . I learned so much from that show lol
sigurd sigurd any food/drink is another commodity with shelf price :)
It's like Net Neutrality on shelves.
Actually NetNeutrality prevented this
$30,000 for 350 stores, so only $86 per store? doesn't sound that bad.
It does sound bad think about how much you have to sell to gain revenue.
@@whywhy7634 Yeah, and to think that the grocery store will also mark it up so they make some money on it as well.
i am from europe, when i went to america i spent ten minutes walking up and down the aisles before i found any actual food! it was all processed cereals with blue bits, fake flavour crisps (chips) pop tarts. there was also an entire aisle just for multi coloured 'sports' drinks whose ingredients were sugar, flavouring, colour and e numbers. and were marketed At CHILDREN!
Welcome to America!
Welcome to the Nacirema ways of doing things.
You know there's usually a produce section on the right side of stores right? The meat is usually somewhere in the back.
Sit Stand Walk LIAR! Pretty much all grocery stores in my area has the produce and meat section right at the entrance. I think what happened is you entered the exit. Another thing... The European grocery store in my area has you walk thru all the processed foods first and puts produce and meats in the back corner.
The real food you're talking about isn't in the aisles, it's around the perimeter.
do we really need more war?
whitepiano23
It's like the song says "War, huh, good God, what is it good for? Bacon, eggs, and muffins!"
".......say it again...war, huh what is it good for....nothing...."😂
Huỳnh Thiên Trung because grocery shelf space and life is the same war.
uh yeah. that's how tech advances. aka cell phone technology. solutions come from problems not from peacefulness.
"solutions come from problems not peacefulness" thats an oxymoron. thats when the most funding is provided. you are looking at the system without understanding it, really. if our society was different, there isn't any reason this 'progress' couldn't be achieved without 'crisis'... but thats not the scheme set up to let people run around hating and back stabbing each other.
Truth is , you should not even be eating most of these garbage (soft drinks, ice cream, cookies, snacks) just stick to basic food!
Bago Garde amen
Bago Garde no go away
No, all high sugar high fat processed food.
Bago Garde but what about having a "cheat day"?
truth is you need to take your tinfoil hat off and live life
Is this true in the U.K.?
Generally speaking, this is true in the UK and Australia. This Economist article, linked in my article above, gives a decent international overview of slotting fees. Basically, the same arguments for and against extend to other countries: www.economist.com/news/business/21654601-supplier-rebates-are-heart-some-supermarket-chains-woes-buying-up-shelves
-Phil
Vox wow I never knew this
How about in India?
If you want to check if it is true in your country you will have to check in your's antitrust/free competitive laws in your country, look especially for terms "Unfair commercial practices"
Probably even more so, supermarkets over here do more own brand products.
There's some really interesting things I've noticed with Generics... they frequently have very high-quality ingredients.
I have health issues which require I avoid certain ingredients, such as food dyes... I've found that I can more frequently find foods with all natural coloring, flavoring, etc, in generic foods than in brand-name foods.... To a point... Some high-cost brand name foods also share these all-natural ingredients.
I suspect that since generic foods are labeled under the store brand, but not made by the store's company, that many (not all of course) generics are made by high-quality brand name compnaies. Any over-production, or anything that doesn't meet a certain criteria of a high-standard, gets relabled as a generic to keep the standard of the name-brand high, and recoup some of the cost that was invested in a product which didn't meet those high standards.
The other interesting one is sodas... You'll almost never find two main soda brands at the same restaurant. Some of this is due to distributor fees, and cutting costs by only having one distributor, but I wouldn't doubt there were some kind of non-compete agreements when signing on with one company to not sell another's.
Have you any examples to compare? (just interested)
I believe the purpose of having only 1 major soda brand at restaurants in most cases is due to more of a marketing approach than straight up cost cutting. Sort of like ad space, the brand of that soda line may actually pay the food service location to distribute only their product in the hopes that they gain customers by branding (you'll notice the major soda brand being supplied at the location always has its logo in a lot of other spots like the glasses, signs, clocks, etc.) and also by sheer sales of only their product in the location. Hard to lose money on an a marketing investment when your product is the only one being sold.
Also you are correct mostly about the generic brands. Most store brands are typically made by another manufacturer, usually of a major brand name (of course usually dairy products are not, but that does vary store to store. I can say that a company I worked for does have most of its generic product produced by major brand labels.) Now I've never been involved in the actual manufacturing of generic products, but I have been to a manufacturing location and spoken with some people who have worked in canneries and the like that do produce generic foods and you are right in the fact that some are exactly the same product from what it seems. Some may have extra stuff added during the manufacturing process so I'm unsure. That I don't know.
One trend I have been noticing is major brands (like UTZ for example is quite openly doing) seem to be producing high standard products under a generic name, but also with their branding somewhere on the package, like "Made for "Store Name" by UTZ". I'm assuming these products, since they are cheaper, are lower in production cost so in turn lower quality to a degree, but still higher quality than the base store brand products that they most likely still produce.
B Randall My father once worked as quality control at a major vegetable cannery. One of the really interesting things he told me was that if they found a new production method and were able to cut costs, they wouldn't be able to sell them at the lower cost.
People typically associate the price of a good with it's value, and when your can of peas is priced at $0.60 and your competitor's is at $0.75, since yours is the "cheaper" product it appears to the customer that it's both cheaper in cost *and* quality.
This is the same reason the Linux OS has never charged for it's product... It knows any price below that of it's competitors (Windows and Apple) would be interpreted as lower value.
That said, there is a certain percentage of consumers who buy the lowest cost, regardless... Creating a separate product line under a generic label is a great way to tap into that consumer group as well.
I'm not sure how much is due to quality really. I'm fairly certain that frequently plays a role, but the cynic in me suspects that some of it is because due to scales of economy, the higher the volume of production, the lower the cost per product, that some high-quality labels do this because they can't sell high-volume at a high price point, but they need to run a high-volume to maintain efficient, cost-effective production. At that point, they're left with overproduction, and need to offset what they can't sell at a high-price with another product sold at a lower price.
Btw that's not why Linux distros are free of cost (also there is no single one "Linux OS", there are multiple distributions based on the same kernel that have different things on top like package manager, GUI, etc.). The GNU General Public License (the software license under which Linux is distributed) states that anyone is free to view, modify or distribute the source code (as long as the distribution is done under the same license so that this freedom is maintained). So if everybody can view, modify it or redistribute it, then there's no point in charging anything for it because anybody can give it away for free. Also, if they charged anything for it, it would take away some of the freedom associated with it. Linux couldn't care less about comparing or competing with Windows or Mac, or about its interpreted value. Anyone who wants to use it can just use it. Anyone who doesn't want to, just doesn't use it. There's no gain or loss anyway.
Now people will understand why their favorite product all the sudden disappeared. They didn't pay up.
😢 mine went away December 2019 I’ll never forget you
this is type of video I subscribed to. Find and report corruption or abuse of power
I think you missed the point
Slashplite they just find the corruption, but shows why it's impossible to get rid of it. Shedding light on how corruption is sometimes protected by laws/government
it's not corrupt, it's just the laws of unintended consequences. you make rules and the results come out and then people say it isn't fair and try to circumvent them, when they made the rules to begin with
Slashplite but vox was payed by the Hillary campaign
+cosmic infinity
I see a lot of people claiming anyone who supported Hillary was paid, but where's the evidence?
Where did you get that Generic Ice Cream?
at aldi
Parker Sprague it's just photoshopped picture taped on an icecream jug...
Astroxy That makes sense...
but now i am sad : (
wow!! ive never even thought about this thanks vox
It tickles me that people don't know this... I grew up in this world.
All new to me... Hope that tickles. ;)
it's all about that Mon hon
Nathanael Crawford
(in Bain voice) You only adopted the back room dealing. I was born it! Formed by it! I didn't make an earnest offer til I was a grown man.
XD
I literally thought this after I hit the OK button. Thank you for making me chuckle xD
Basically monopolies are inevitable without proper regulation.
You just made me question my innocent trips of me accompanying my mom to the grocery store.... something as innocent as that could even change. Wow Vox. Truly amazing even for something as simple as that.
I used to work at dollar general for 5 years and used planograms to help set up new displays. =D Now I work for myself and am a part time CZcamsr. Don't miss my day job one bit! =D
Sometimes I "accidentally" put a bottom shelf item on an eye-level shelf.
Come and sue me, Nestle.
Funny that many big businesses don't realize that brand loyalty/word of mouth is more powerful that locations on shelfs.
Location in shelfs are really important when it comes to non loyal customers who change brands regularly. Ultimately there is a definite advantage and every business would fight for it.
Thiaghu Rajan yea, not every person only buys one product. I just don't understand why giant companies who seem to have a monopoly on goods pay so much for placement.
James Burgess I wouldn't necessary say it's more powerful. It can appeal to some with preferred brand. But if you go and all you see is Coca-Cola everywhere and in the far corner it's Pepsi you might get tempted to get cola could be Cuz the shelf looked nicer or the Pepsi looked just slightly dusty. it's true. major corporations push on other companies though they just naturally control the market
If someone is going to buy it anyway, it doesn't matter where it is.
But if someone wasn't, it certainly does.
I work a checkout, I hear a customer tell me that they only came in for one item despite the pile of groceries they now have... at least 3 or 4 times an hour. And that's one checkout, for one shift-- of people who actually say it.
Jose Ramirez
.
Great video! Always nice to see quality videos, thanks Vox.
Fascinating stuff I never knew about!
This seems similar to Net Neutrality, the ISP being the grocery store and major companies paying up which maybe a relativtely insignificant amount to them but a very significant amount for the newcomer and startups.
Great informational video!!!! I love Vox they take things that would generally be considered boring and turn into the most interesting things on CZcams! Thank you Vox.
"It's not about the products" That's the voice I am going to hear in all my nightmares from now on
Slotting prices raise prices because then the company can raise their prices a lot and the retailer won't be able to do anything about it because that company already paid the slotting fee.
PS The consumer also has to pay the slotting fee in case you forgot.
Couldn't you argue that if slotting fees were removed, retailers would have less money so they'd have to raise prices of products anyway to keep their profits up?
I'm afraid you're stupid.
Funniest bit about this is that for years companies paid to have their products at eye level, only to find out decades later that the ''grab level' is just above elbow height
They really do so great on editing their videos, that and providing as much proof as they can fit.
Almost every Vox video ever:
Part 1: "Here's a problem in society that you didn't know about."
Part 2: "Here's a study that proves it."
Part 3: "Basically, the problem is caused by corporate greed."
Anyone have the link to the C-SPAN broadcast used near the beginning of the video?
Here it is: www.c-span.org/video/?152059-1/grocery-stores-product-fees
-Phil
Awesome, thank you Vox
Vox How do you decide on and prioritize your topics? Sometimes they seem so out of left field (albeit always interesting).
by slotting them, haha
nerd
In any given grocery store, you have aisles and aisles of goods. End caps. Displays. Overhead overstock. Etc. Etc. Etc. If you want to put a new product out, no problem, you can always find space.
But there's only a couple aisles in the freezer section. And freezers are expensive to buy, maintain, and run. They are operating 24/7 at full blast and have their own lighting system. It's a finite space both width and depth. It only makes sense that grocery stores would implement these prices. The grocery store is fronting the cost of the freezers and the utilities and the space is very limited to showcase products. Grocery stores run on very small margins and I doubt they're making a fortune on these fees -- they're just trying to make up the difference on products that are very expensive to display.
I'll never look at a grocery aisle the same way ever again
You know it’s time to sleep when your watching these types of videos
true ;p
This guy makes the best Vox videos. Getting him on the channel has been a very smart move, and I always look forward to any and all videos he makes on this channel.
*Vox doing great videos this year, keep it up.*
I work in the FMCG industry in India, and this happens even here. Even in corner stores, premium shelf-space is sold for a price.
Good to be bck to the informative playlists :) Keep it up Vox!
This isn't news, or surprising if you understand retail at all. Paying for that "impulse spot" at checkout will necessarily cost more, because you're stuck in line and you may give more thought to buying that candy bar or drink.
No one's doubting that it makes sense to charge more for better spots, the thing that's hard to believe is that the space is actually for sale. I just always assumed that it was at the discretion of the store owner, so it's at least news to me.
IT'S NEST-LEE?!?! ALL THIS TIME I THOUGHT IT WAS NES-TLE
It's not EE, it's nes-lay
***** so how is gourmet pronounced??
***** I was being facetious, the correct English pronunciation is what you'd expect. But the proper, French pronunciation is quite different, see here (click the 'Listen' icon) translate.google.com/#fr/en/gourmet
So it's nes-deen?
Everything in English is pronounced ashwra-la-bing-bang.
It dawned on me last night that there was this shelf war taking place behind the products and this helped affirm my belief
Literally my favorite type of vox videos
The fight in the bread aisle is tough!
This mans really just pronounced the s in “controversial”
Would really love to know how you guys go about your research. It's quite comprehensive and yet easy to understand.
I work at a grocery store and while I don't work in inventory, I do know we take recommendations from actual customers on products they want to see (even certain brands in certain sizes. For example an obscure root beer brand we sell came only in 2 liters. A customer asked our manager to bring it in different sizes, and we actually complied
Danggg, after watching this video I learned something..
...there's a frozen and refrigerated magazine? I'm curious of what articles it may have inside, and also other magazines with the same topic lol
BoogerDeluxe22 it's not a retarded question tho -,-
I really do mean that, i didn't know that such magazine exists.
What I don't get is at all the stores I go to there are aisles for product groups eg dairy and then there there are different types for each section butter. But the staff there just put stuff up where ever they can in that section. I doubt they are given such strict instruction to say exactly where everything should go
But they are.
Lived with the Dairy Manager at a big-chain grocery store. He had a map of where each product needed to go and how much space they needed to take up. Not only was he in charge of making sure they had enough product to sell, but he also had to make sure that they had enough product to fill up the space the product's maker had paid for.
Harry Haynes Actually, they should've done so. What it means is that they might be reprimanded for not doing it "correctly".
I'm guessing the people you saw weren't following company policies. I study business and I can assure you this is something businesses take very seriously. There are people in retail companies whose entire job is to decide how every single inch of every single store is going to be utilized. Misusing a foot of space can cost a business thousands of dollars.
Harry Haynes they not doing their job properly and being lazy
I really enjoyed watching the camera on the grocery cart in the panning shots reflected on the glass of the ice cream refrigerators. 😂
Worked in a pharmacy for a month
Had the honour seeing the sunsilk guy beat up the head and and shoulders guy for taking a single column
What's the problem? The manufacturers consent to pay. They CONSENT. Government agencies don't get to intervene just because they don't understand what the charge is for.
Who's that guy on the ice cream box
wszyscyzginiemy
I'm wondering that too. I'd buy that ice cream just based on his picture. His face says "I keep it simple. I mean, do I look like the kinda guy who can come up with artificial flavors?"
Probably a stock photo.
Great new information. Subscribed :)
Working at a grocery store myself, I have wondered about stuff like this, great vid :)
Where can I get generic ice cream?
I don't get what the problem is. If it was a government organization who made these laws the line the pockets of a few individuals, I'd get the controversy. But these are private companies who's goal is to make a profit, and can determine the best way to do that all by themselves. You said yourselves in the video that some stores don't do it. They decided that it's in their interest to do things differently. If it was really that horrible and inefficient, companies would stop or risk going under.
Joseph Douglas every industry needs to be regulated. It's not about how much money can I make, but how they make it. Just because they can doesn't mean it's right.
Movies used to show millisecond shots of sodas and popcorn, so the subliminal part of your brain would make you crave them, and make you hungry for them. The government stopped it after they deemed that it was wrong, because it made people subconsciously buy your product, essentially losing your free will. It's things like this that make the companies have to be regulated.
it's literally extortion.
LittleBill902 more like rent.
When we're talking about any market, the important issue is in which way is good for the economy and the common interest, and private benefit goes second. All western countries work on some kind of free entreprise/government control mix, based on the idea that it's the best system on their societies.
The common assumption is that, if a market is working properly, then it's not neccessary to regulate it. But it's very common to see markets where some antieconomic practices are common. Then some regulation could be necessary.
On this case: some people argue that this is an additional cost that affects much more small firms than the large long established corporations like Unilever or Nestle. If that's true, then we're talking about an entry barrier, which limits competition. It's good for the big corporations(as they can be more comfortable and raise prices), but not for the general consumer, who has less choice, and pays more for the same.
Is this true for this case? Who knows. But I guess you can understand now why is not so easy
I may disagree with some of the viewpoints expressed on this channel, but the quality is astounding and very informative a lot of the time. I keep coming back to watch, so whatever you're doing is working, Vox
I work night-crew at a Safeway. It helps that stuff is categorized on the aisles so we can spot the items easily. I will agree though that we need more variety in product brands on the shelf.
where can I find generic ice cream?
so how long until nestle copyrights the concept of being evil and starts sapping money from other evil companies for violating it?
i doubt that you would remember this or even know of it.....N-E-S-T-L-E-S..nestles makes the very best....CHooOOC>>late. .. it was an old t.v. commercial from a long time ago, done by a couple of puppets the guy that operated those puppets invented an artificial heart. amazing what can happen with the power of chocolate. i know ..no one cares
As an associate that has worked at Walgreens for almost two years- all of this is just confirmed thoughts that I had previously.Week after week our store gets updates on products that move to the front of the store and product displays that get put out.Ever wonder why stores will move shelving around every once in a while? Its to adhere to calculated product selling rates and bought product placement. Every few months our cosmetic wall gets rearranged- and our regional manager will make sure that it is placed correctly. Companies will buy endcaps and sidepanels (and also sell the store coupons to give to customers) and we must follow them.I had previously thought that they just liked to freshen things up so the shelving can get cleaned more regularly and bad products can get trashed until of of my top managers was talking about how L'oreal had bought a massive section of the store and we had to adhere to it.
"Ever wonder why stores will move shelving around every once in a while? Its to adhere to calculated product selling rates and bought product placement."
I hate it when they do that. Every time a store does that I have to waste time finding something when I previously knew exactly where it was.
Speaking as someone who works in retail in Africa, I can confirm that this is pretty accurate. Great video, Vox. This content is the reason why I'm glad to be a subscriber.
tbh $30,000 for 350 stores is not that much if you're trying to start a major business
Stop supporting big corporations and buy locally and from small business/retailers!
Who edits these videos?!? Your video quality is fantastic.
I really enjoy these types of interesting videos, with no agenda attached.
None of you are first.
Not in the grand scheme of things they're not. For sure.
HeartOfVanilla Ice MY NAME IS NINOOOOOOOOOOOO!!
Sex
I saw this WAR in the Sausage Party movie, and It ended with an orgy. :(
thanks vox. this was a good video. hope you'll do more videos like this like you'll used to. your videos were getting really annoying during and after the election. just politics, politics and politics. i wouldn't mind that either but you'll were just telling people things they already knew. really boring stuff.
360flyby -AMEN!
Obviously no one KNEW them seeing who because the "president-elect."
if you didn´t notice this is also politics. In many countries this is regulated in order to protect consumers and to correct monopolistic practices while in the US it is not
Ecléctico Iconoclasta i meant to say election based topics. politics would always be a topic on vox, which i don't mind. just that this election got kinda annoying and there was no way to escape all the coverage on it. i'm not even from the US and i still was bombarded with all this coverage that was basically useless to most people.
Great video journalism. Keep it up.
As a delivery driver stopping at several grocery chain stores daily, I would like to mention to the folks here that often - in fact, standard - practice is that delivery drivers or vendors 'merchandise' their companies products. So, essentially, the argument that it costs the grocery chain money to place these products on their shelves is bullshit. Chips, beer, wine, candy and soda - all these employ burly dudes driving big trucks who do - literally - the work of the part-time stock clerks. Then they climb into their trucks and haul ass to their next stop.
And, as a part time stock clerk I'll tell you right now that the majority of items in a grocery store aren't DSDed but come from the distribution center and are stocked by us. So, yes putting an item into a grocery store costs money.
No wonder Aldi does soo well with all of their generic brands
Best store ever.
All this and grocery stores won’t demand plastic free products....
i worked at a grocery store and it was pretty easy to determine what products to sell and where to position them in my department without those fees. we had buyers who made actual decisions.
The voice scrambling makes that woman sound like Lisa Simpson.
i still dont see why slotting fees are wrong, people should be able to charge what they want for fixed space
Spectre they can turn into a very hostile system for small business owners. With slotting fees a large corp can simply buy w cash extra slots to push out a smaller business who can't afford it. Walmart's test system is much better for local business, the fees to package and display is much cheaper on 4 stores than being forced to pay for 300 stores upfront when you don't even know how well the product will sell.
It goes against the free market by allowed monopolies and entities with lots of capital to dominate not only with their products, but by marginalising the competition. At the end of the day the bigger companies will get wealthier and more powerful, whilst the smaller companies will fail year after year (and not always because their product is of a lower standard, but because the product was never *allowed* to get to the consumer). At the end of the day, the consumer suffers the most. We can probably solve this by breaking up huge supermarket monopolies and duopolies and localising supermarkets so the products can be more tailored to the local consumer, and not just to the mass market.
Spectre There are also programs to help waive or lower the slotting fees for different types of businesses, such as minority businesses, businesses that manufacture in America (aka "Made in the USA"), and more. In general though it really is harder for small businesses to get into major retailers without investors and/or a large amount of money upfront. I knew a bit about this already but the video was really interesting to watch and well worth it.
Love videos by Phil.
I absolutely ADORE the Fable style music!