How do company's get stores to sell their product?

The company who makes the product use cheap materials and sell it at a higher price than it's worth because of the hours that went into making it then i believe they have tesco manufacture it and each company gets a share of the proceeds.

Mostly the companies offer a profit margin that makes the item attractive for them to sell. Some companies pay for shelf space - in my Tesco, egg producers and some bread manufacturers do this. The difference is that where Tesco buys the product, it will reprice the item "reduced to clear" if they want to get rid of extra stock. They won't do that where producers rent shelf space - in that case, the company takes back the unsold items. If you were retailing something at £3, you would probably have to make it for about 50p in order to make enough profit to cover your own overheads. You would sell it for £2 or £2.25 to Tesco would then sell it in turn for the £3 recommended retail price. Very often the retailer gets more profit out of the item than the producer does - see the price of lamb chops compared with the price the farmer gets.

Mostly the companies offer a profit margin that makes the item attractive for them to sell. Some companies pay for shelf space - in my Tesco, egg producers and some bread manufacturers do this. The difference is that where Tesco buys the product, it will reprice the item "reduced to clear" if they want to get rid of extra stock. They won't do that where producers rent shelf space - in that case, the company takes back the unsold items. If you were retailing something at £3, you would probably have to make it for about 50p in order to make enough profit to cover your own overheads. You would sell it for £2 or £2.25 to Tesco would then sell it in turn for the £3 recommended retail price. Very often the retailer gets more profit out of the item than the producer does - see the price of lamb chops compared with the price the farmer gets.