Competition and Buying Patterns:

Among the wholesale and retail business, competition tends to be less about products of similar nature and more about shelf space. Typical stores have limited display space and devote most of that space to brand name products. Many larger manufactures offer the merchant some form of incentive, either as a discount, or through the use of promotional materials. In larger stores, with a multitude of offerings, visibility plays a major part in customer selection. One concern among most retail stores is that of supply. The manufacturer must have a system in place to ensure timely deliveries of the expected quota. Failure to fulfill these contracts can result in loss of exposure, loss of customers, and has been listed by the Small Business Administration (SBA) as one of the leading causes of failure among start up manufacturers.

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