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Nomander makes great sense. Creme, you really need to chill, take a deep breath and look at the whole picture. There are always movie producers trying to make a name for themselves and they pick on Wal Mart b/c they are huge. It is not Wal Mart's fault that the American factories sold out to China so they could make money and now they have to go that route to get the merchandise. Why are you not outraged at the owner's of the plant that sold out and shut down. If a Wal-Mart is 24 hours, they have security and are well lit. You have to be careful everywhere. My niece's boyfriend had his car broken into at Olive Garden. Am I supposed to boycott them b/c they have crime in their parking lot? As for how they treat their employees, if you haven't worked there, how do you really know? I was an Asst. Manager for them right out of college. I enjoyed working for the company. Most of the people who worked for me liked it and believe it or not, A LOT of them are still there 15 years later! I didn't like retail hours so I got out. You really need to take things with a grain of salt. The same stuff Wal Mart sells is sold at Target, K Mart, etc. Why should I go there and pay more? Just saying don't take these documentaries as the be all end all in facts.
The saddest thing about Walmart is that Sam Walton was committed to a buy America program and it has been all but abandoned. The other problem that has impacted small town America is that since Walmart buys in such bulk, it can demand much lower prices, which other retailers then demand from their suppliers, and it tends to put small manufacturers out of business in the US which cuts down on competetion in the market. Merry Maid Dairy in Phoenix is an example of such a casualty. Personally, I am good with Walmart being open, I just don't have to shop there.
America's anti-corporate policy of punishing American companies via taxes and over-regulation, would be a major reason why nothing is made here.
Who can afford to do business here anymore? And why bother if it's going to be taxed and regulated to death, and your business subjected to a million obscure little laws and requirements that increase your costs?
And God forbid you become truly sucessful and live the American dream...then you'll be targeted for a windfall profits tax to bring your business back down where it belongs.
It is not Wal Mart's fault that the American factories sold out to China so they could make money and now they have to go that route to get the merchandise.
On the contrary. Walmart engages in a practice known as monopsonisty.
Walmart dictates the price that it will buy from suppliers. The suppliers are forced to lower their prices in order to sell at Walmart. If they fail to lower their prices, then Walmart refuses to carry their products, not one, all of them.
As a supplier, you cannot afford to lose the huge market share that Walmart represents, and it would also impact sales at other stores that carry your products.
One of the results of Walmart's unethical and illegal practices is that 4 of its 10 suppliers had to file bankruptcy.
Note that Hillary was on the board of Walmart at a time when Staples and several other companies were sued by the FTC for engaging in the same unethical and illegal practices that Walmart. Note that A & P was sued and nearly put out of business for engaging in the same practices Walmart does.
..Walmart dictates the price that it will buy from suppliers. The suppliers are forced to lower their prices in order to sell at Walmart. If they fail to lower their prices, then Walmart refuses to carry their products, not one, all of them...
Sounds like the open market to me.
If the mfr. can't afford to produce the product at the price Walmart wants, seems they would let Walmart go to someone else.
Why would a business "allow Walmart to put them out of business"?
I question the rationale behind what you're saying.
If the mfr. can't afford to produce the product at the price Walmart wants, seems they would let Walmart go to someone else.
Why would a business "allow Walmart to put them out of business"?
I question the rationale behind what you're saying.
Basically it is a form of monopoly. Take it to the next level. When there is only one supplier left, and they can make all their money through Walmart, what happens to the prices at Walmart? They do not allow Walmart, Walmart demands prices that small businesses, (the engine of our economy) cannot match due to their size.
On the contrary. Walmart engages in a practice known as monopsonisty.
Walmart dictates the price that it will buy from suppliers. The suppliers are forced to lower their prices in order to sell at Walmart. If they fail to lower their prices, then Walmart refuses to carry their products, not one, all of them.
As a supplier, you cannot afford to lose the huge market share that Walmart represents, and it would also impact sales at other stores that carry your products.
One of the results of Walmart's unethical and illegal practices is that 4 of its 10 suppliers had to file bankruptcy.
Note that Hillary was on the board of Walmart at a time when Staples and several other companies were sued by the FTC for engaging in the same unethical and illegal practices that Walmart. Note that A & P was sued and nearly put out of business for engaging in the same practices Walmart does.
I think you mean a monopsony which is when there is only one buyer and multiple sellers of a product. This isn't the case, since clearly there are other retailers carrying the same products as Wal-Mart. Certainly suppliers want shelf space at Wal-Mart, and Wal-Mart does set certain price points for various products. If none of your products can meet that price point, Wal-Mart won't carry your products. If some of your products do meet the price points and some don't, Wal-Mart will carry the products that do.
As regards Staples and A & P, could you cite sources? Because Staples problem as I understood it was that they made claims to consumers of having stock available and promised delivery times in order to receive orders, when in fact the stock wasn't available and they were unable to deliver the goods in the time promised. The only other Staples/FTC matter I am aware of is the attempted Office Depot merger. A & P got into trouble for its buyers lying to suppliers about competitive bids if I remember correctly. I think if Wal-Mart were breaking the law, the FTC would certainly pursue the matter. It's not like Wal-Mart doesn't have new lawsuits daily to deal with.
And I'm unsure what Hillary has to do with any of this????
I guess I'm dense; I still don't understand why Walmart should be required to pay more for products it can get for less, making them raise their prices and become less competitive.
Clearly I'm "not up on economics" as I should be, so I'll duck out now...
[Heading to Walmart for cheapest ammunition...not made in China by slaves, but still cheapest...hmm?]
I guess I'm dense; I still don't understand why Walmart should be required to pay more for products it can get for less, making them raise their prices and become less competitive.
Clearly I'm "not up on economics" as I should be, so I'll duck out now...
[Heading to Walmart for cheapest ammunition...not made in China by slaves, but still cheapest...hmm?]
It's more involved than Wal-Mart simply paying more for products. Say that you made toothbrushes for kids, with little princesses and frogs on them. You've been selling them at some regional retail chains for $3.50 apiece. So you take your toothbrushes to Wal-Mart's corporate, get a meeting with a buyer, and the buyer says "Great idea, we'll order 3 million of them, but we need to market them at $3.00, and we'll buy them from you at $2.90." You've been selling them for alot more, so you have to determine if you can do them at this price. You take a look at your current costs, and go back and say, sorry it costs me $2.90 to make them, I have to make a reasonable profit. Wal-Mart may suggest some different suppliers or different ways to cut your costs. They might help you negotiate lower rates with your current suppliers since you'll be ordering alot more. When all is said and done, they might help you get your cost down to $2.82. Then it's up to you to decide, if the potential profit is enough, have you weighed in all the additional costs this expansion is going to cost, what happens if the product doesn't sell well nationally? Many small businesses find they aren't prepared for the expansion when they win shelf space at Wal-Mart. There is a learning curve and growing pains that have to be dealt with. And putting all your eggs in just one basket is just plain risky, but that is what a lot of small business do when they start getting orders from Wal-Mart.
I haven't been in a Wal-Mart for several years due to negative effects of that place. We need to think beyond "Right Now!" I'm saving buck, and think long term. Buy shopping there, and many other places like wal-mart (target , etc), you are hurting your own well being in the long run. You are lowering the wages and benefits of people in your own area. Ultimately, you may save yourself even enough money to be out of a job, if you get my drift.
But, people are lemmings, and every time I drive by the sucking black hole that is Wal-Mart, the parking lot is jammed. Fools.
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