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What are some reasons why a business could make more profits selling through one retailer than to many retailers?
Wiki User
∙ 16y ago
One of the reasons is the appearance of exclusivity. If you only sell through one retailer, and your product is harder to find, and it is perceived as a luxury product, then you could charge higher prices and make more profit. One retailer doesn't always mean harder to find... some mass retailers will give you extra money in a contract to be the only retailer, and the only way for people to get your product. If it is popular, you could negotiate a higher exclusivity clause. Another reason is that there will be no competition sales-wise. One retailer isn't going to slash prices on your product to outsell the competition. That protects you from the perceived devaluation of your product.
Wiki User
∙ 16y ago
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