reply to 25139889
Re: It's the revenue Ive watched the documentry and now how their system works.
They are cut throat without question, but my point still stands. Suppliers will not use Walmart if they can't make money and your "sale argument" is BS. Walmart purchases items from these people and then resells them. They can give them away if they want, but the supplier has already been paid so it is WM loss, not the product manufacturers.
Your music CD example is probably very wrong, but even if it wasnt, then the suppliers are still making money (enough to make them happy) or they wouldnt sell through Walmart. It is that plain and simple.
Regardless of what else you through at this, the bottom line still stands. ANYONE and EVERYONE that supplies to Walmart is getting an amount that is satisfying to them or they wouldnt be selling to Walmart. Any of you arguing any other way are talking out of your rears.
Walmart does 2 things I dont like, 1 they require businesses to have an established place in the town of their HQ and 2 because of their cut throat method they encourage companies to use off shore labor.
Did you know that products are made specifically for Walmart for that reason? So that 46" you bought at Walmart probably isnt the same quality build as the one selling at BestBuy for $50 or $150 more. This I know for a fact for when I was an electronic reseller my supplier was required to disclose Walmart sku's to me.
·WOW Internet and..
Can't believe I'm saying this, but NWOhio is right. Walmart does dictate the price, and you know what this causes? Outsourcing! Cutting corners! Lower quality!
In order to make money at the prices Walmart forces you to charge, you have to make huge cuts to push the cost to manufacture (+overhead) below the sale price. In manufacturing, you can cut labor or material costs. Lower material costs are obtained by getting lower quality materials. Lower labor costs are obtained by outsourcing.
Believe it or not, but Walmart is one of the biggest causes of outsourcing in the manufacturing sector. In order to survive, you have to outsource to make a profit on the Walmart dictated price.
Don't outsource, and one of your competitors will, undercutting your price, allowing the competitor to offer better prices to the retailers (more profit for them), and eventually you will have nowhere to sell your goods.
There's a reason the Walton family is one of the richest in the world.