Originally Posted By: Quattro Pete
Originally Posted By: 05LGTLtd
If it is a choice of shelf space at walmart, then bean counters are looking at sales not thinking of the products they offer. QSUD and Pennz Platinum are similar products. Because they are both cheaper than Pennz Ultra, they most likely sell more units. (walmart: low price is king) So the choice to discontinue Pennz ultra is pure numbers game.
I agree. Basically, each vendor has a certain amount of shelf space for which they pay. To get more space would be very expensive as SOPUS would have to pay big bucks to take some shelf space away from other vendors such as XOM, BP, etc. Shelf space is a limited resource.
So, to make room for PU, SOPUS had to eat into the space currently occupied by PYB, PP, and any of its other oils. But due to its higher price, PU is probably not selling in large quantities, so it's a poor utilization of shelf space by SOPUS. It probably makes more financial sense to give most of this space to PYB which sells in large quantities. Isn't PYB one of the best selling mineral oils at retail level (not counting quickie lube places)?
It is the same reason why you can't find PU 5w-40 at local stores. Because it sells in low quantities, it wouldn't be the best utilization of shelf space.
Your saying product owners lease space on Walmart shelves and make stocking decisions? Interesting, I have to ask the local manager about that. He mentioned to me if it doesn't sell "X" amount its gone which I took as he, Walmart is "the decider".