A small chain of supermarkets in the province of Manitoba sells only manufacturer's brands.Which of the following is one of the arguments you could have used to dissuade the supermarket chain owner from selling only manufacturer's brands?
A) A well-known manufacturer's brand will not enhance the chain's image.
B) Manufacturers rarely spend money advertising the brand name to consumers.
C) Manufacturers typically offer a lower gross margin than could be earned on private label brands.
D) Manufacturers force the chain to carry a large in-store inventory.
E) Relying on the manufacturer or wholesaler to deliver a national brand quickly is optimistic at best.

Question

Quizplus · Accepted Answer

Selling only manufacturer's brands limits the supermarket chain's ability to create and sell their own private label brands, which typically offer higher gross margins.

A Small Chain of Supermarkets in the Province of Manitoba