What are slotting fees?

Slotting fees are payments a retailer charges to stock a new item, covering the cost and risk of giving it shelf space. They are common in grocery and mass, quoted per SKU per store or across a chain, and they are typically taken as a deduction from payment.

Slotting is a fixed cost against an unproven product, so it raises the volume the item must reach to break even. That figure is worth calculating before agreeing to the placement, while it can still change the answer.

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