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How Wal-Marts suckers companies in...
Small company making 10,000 widgets at $1 each.
WM calls, "we want 20,000 and will pay $1 each"
Company ramps up production, goes into debt, adds employees to double production at same profit.
Next year - WM calls we want 30,000 but will only pay 75¢ each.
The company can't afford to lose WM contract. They now have to add production but cut profits because production costs are set. If they don't take the WM deal they go out of business due to the debt they took on to deal with WM.
Game, set, match Walmart.
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They haven't been very successful against Apple . . . . Steve says "have some kool-aid" . . .
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gabester: People aren't going to wake up and realize that. Ever. Thanks for doing your part though. I'll shop at Walmart but usually only if I'm passing it and need to look for something. I don't go in there specifically for groceries or anything else.
Jeff: I think it might have been, yes. Although I thought it was a bit older than 2005.
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After not having been in the local Walmart for years I wasn't driving 8 miles to the CVS or Walgreens for Musinex so went to Walmart.
1. whoa - it's a blue version of Target now
2. what's with the huge yellow asterisk ? is that an indicator of what's inside ?
3. I wasn't horribly impressed with the grocery store prices when compared to BJ's/Costco/ PriceRight . If I shopped only at Shaw's they would be seem to be bargains.
Roll backs and "new lower price" doesn't really work on me. I always consider the difference as what they were ripping me off for before.
Another negative affect.
I want to shop where they just sell at the lowest possible price where the store and it's employees can make a decent living, with out all the rewards and coupons crap and games .
We have a Target and a Walmart across from each other.
I'm not impressed with Target prices, either.
Could be the local store(s).
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Ombligo wrote:
How Wal-Marts suckers companies in...
Small company making 10,000 widgets at $1 each.
WM calls, "we want 20,000 and will pay $1 each"
Company ramps up production, goes into debt, adds employees to double production at same profit.
Next year - WM calls we want 30,000 but will only pay 75¢ each.
The company can't afford to lose WM contract. They now have to add production but cut profits because production costs are set. If they don't take the WM deal they go out of business due to the debt they took on to deal with WM.
Game, set, match Walmart.
Or Plan B by some companies dealing with Walmart's incessant demands for a lower price, they create a Walmart specific version of their product made more cheaply. And that is presented as if it is the same as sold elsewhere.
As an example, a name brand pair of jeans I buy changed the seaming for just the Walmart version so it could be sold at a lower price. I did not notice the change until the seam blew out under stress. Instead of a proper double sewn french seam being used for the inseam, a faux french seam was done by oversewing a simple seam to look the same from the exterior.
I don't know if they still do that for Walmart, I stopped shopping there years ago. I could get the same brand of jeans from Kmart or Target for a couple dollars more, and get the proper seaming and strength of construction. I also noticed other brand name products with a more cheaply made version at Walmart. But they had the same style number, etc.
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lots of clothing manufacturers make cheaper versions for stores like Wal-Mart, Marshall's, TJ Maxx, etc.
same brand name, but typically lesser quality.
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I have read that they have cheapened Fram oil filters. They apparently saved money by using less folded cardboard inside them. I also read that Snapper mowers turned WM down because WM wanted to cheapen the mowers too much.