skip to content

How does TEDi make money?

An article by Orange by Handelsblatt


Photo: MichaelGaida /

TEDi is a german non-food company that offers a wide range of products at an extremely low price. But how is it even possible to earn money with such a low profit margin per product? What is the business model behind TEDi?

For Jun. Prof. Dr. Matthias Heinz of the WiSo Faculty, the success of the company is not surprising. He says: "TEDi has a decisive advantage: the Germans' preference for discounts." This is exactly what TEDi benefits from. The profit per article is very low. However, if an article is sold millions of times, the profit margin increases. In addition, the company continues to grow. TEDi already has 1900 branches and opens a new one every two days. Over the next few years, the number of branches will increase to 5,000.

The full article can be found here: How does Tedi earn money?

Matthias Heinz also talks about the weakness of TEDi's strategy in the ntv-interview.