Who pays for POS material?

[CKG]

I've just got involved with a business that sells it's own brand of product into high street retailers.

My question is who is it that generally pays for point of sale materials and such like.

I can imagine printed materials are given away to support the retailer as they cost pennies but what about more expensive items like branded fridges, illuminated signs and customised shelving bays etc.

What's the general consensus?

 

[Leo-InstallingIT]

I think it depends on the customers spend level really.

A customer that is spending a decent amount will expect things like that for free or they will just push a different products.

 

[Philip Hoyle]

It depends.

If the supplier wants a uniform marketing image, they'll usually supply display stands and other POS material - in fact, some will make it a requirement of supply that all retailers display their POS. Some suppliers will charge, some will provide it FOC - most likely that it's negotiable dependant upon quantities sold and other discounts etc.

I've spent a lot of time working with a couple of new car dealerships and it was a condition of the sales agreements that the garages had to take whatever displays, literature, window signage, etc they were sent - invoices were raised and the money was deducted automatically by direct debit - they had no choice in the matter as the suppliers wanted all their main dealers to look exactly the same. Some of it was a real rip-off, but it was a matter of take it or leave it (the dealership that is!).

At the other end of the scale, say for a convenience store, the reps will leave POS displays if you buy from them, i.e. Cadbury Creme Egg stands etc. Coca Cola will usually loan you a fridge on free loan on condition that only their products are in the main body of the fridge, Walls will likewise lend a free freezer as long as you only stock Walls ice cream, etc.

Then I had a client who manufactured bronze figurines and they supplied, on free loan, some very posh and expensive glass revolving display stands (talking £1k plus and that was 20 years ago) on condition only their products were displayed in it and that it was displayed in a prominent position. The sales reps decided who got them and if sales weren't high enough, they were taken back.

It really is just a matter of negotiation between what image the supplier wants as opposed to what the retailer wants. After all, both parties benefit if POS displays generate more sales, so both sides have to talk about the costs of producing those POS displays.

 

[Sobie]

Basic POS - Cardboard dump bins, correx posters etc are normally supplied to us free at the start of the season/ first order of that product of the year.

If we want new display stands (Tegometal etc) then we have to meet a minimum order quantity, most suppliers insist on £1K of products for each stand.

OR our with some suppliers I've payed for the stand but get some free products to put on it.

OR we've taken on pre-loaded stand deals. get the stand for free but it comes with the suppliers recommended products/ volumes.

 

[CKG]

Thanks for the insights.

I wasn't really sure what retailers expectations were.

I've just bought out a company and was alarmed at the free and easy distribution of POS material to new customers verses the value of that customer.

 

[appyammer]

Thanks for the insights.

I wasn't really sure what retailers expectations were.

I've just bought out a company and was alarmed at the free and easy distribution of POS material to new customers verses the value of that customer.

i think you have hit the nail on the head


it amazes`me how some reps just cant wait to get their pos out of their cars while others it takes weeks to get the info