You have been hired by a regional supermarket chain as the candy and snack buyer. your shelves are dominated by national firms, like wrigley’s and nabisco. the chain imposes a substantial slotting fee to allow new items to be added to their stock selection. management reasons that it costs a lot to add and delete items, and besides, these slotting fees are a good source of revenue. a small, minority-operated, local firm produces several potentially interesting snack crackers and a line of gummy candy, all with natural ingredients, added vitamins, reduced sugar, and a competitive price—and they also happen to taste great. you’d love to give the firm a chance, but its managers claim the slotting fee is too high.

1. should your firm charge slotting fees?

2. are slotting fees fair to the relevant shareholders—customers, stockholders, vendors?