““With such thin margins, profits turn to losses if the retailer loses control of costs by even one or two percentage points. Thus, any activity by the manufacturer, even a change in packaging, will come under intense scrutiny for its impact on a retailer’s in-store merchandising or supply-chain handling costs. There is little chance the product will be listed if it is more costly for the retailer to handle. Equally, any manufacturer who does not immediately jump through hoops to instigate packaging or handling changes required by a retailer for efficiency reasons will find the temperature in negotiations rapidly dropping.””
