Lightning wrote:I actually shop elsewhere and am willing to pay a little more for my items instead of being surrounded by the freaks they attract..
I'm On Fire wrote:Clearly you don't know of anyone that works there. .
northernmainecoal wrote:WalMart is a perfect example of what is wrong with this country
This is the product that Wal-Mart fell in love with: Vlasic's gallon jar of pickles.
Wal-Mart priced it at $2.97--a year's supply of pickles for less than $3! "They were using it as a 'statement' item," says Pat Hunn, who calls himself the "mad scientist" of Vlasic's gallon jar. "Wal-Mart was putting it before consumers, saying, This represents what Wal-Mart's about. You can buy a stinkin' gallon of pickles for $2.97. And it's the nation's number-one brand.
For Vlasic, the gallon jar of pickles became what might be called a devastating success. "Quickly, it started cannibalizing our non-Wal-Mart business," says Young. "We saw consumers who used to buy the spears and the chips in supermarkets buying the Wal-Mart gallons. They'd eat a quarter of a jar and throw the thing away when they got moldy. A family can't eat them fast enough."
Young remembers begging Wal-Mart for relief. "They said, 'No way,' " says Young. "We said we'll increase the price"--even $3.49 would have helped tremendously--"and they said, 'If you do that, all the other products of yours we buy, we'll stop buying.' It was a clear threat." Hunn recalls things a little differently, if just as ominously: "They said, 'We want the $2.97 gallon of pickles. If you don't do it, we'll see if someone else might.' I knew our competitors were saying to Wal-Mart, 'We'll do the $2.97 gallons if you give us your other business.' " Wal-Mart's business was so indispensable to Vlasic, and the gallon so central to the Wal-Mart relationship, that decisions about the future of the gallon were made at the CEO level.
Finally, Wal-Mart let Vlasic up for air. "The Wal-Mart guy's response was classic," Young recalls. "He said, 'Well, we've done to pickles what we did to orange juice. We've killed it. We can back off.' " Vlasic got to take it down to just over half a gallon of pickles, for $2.79. Not long after that, in January 2001, Vlasic filed for bankruptcy.
Lightning wrote:Because of Wal-Mart's low pricing, many people only see the "external" effects. For example, small businesses can't compete and go under. The small Ma and Pa stores don't thrive. When the owners retire or pass away, many of them just close shop since a young person looking to invest in a business knows it wouldn't pay the bills.
Being a bread man, I also see the "internal" effects of their low pricing. Wal-Mart pretty much dictates what products we can take in their store, how much we sell them for (retail) and how much they (Wal-Mart) will pay us (the company/manufacturer) for the products. They even dictate how much space will be given for an item and how it will be displayed on their shelves..
So, as the Ma and Pa stores loose ground where they could get full retail and we could get full wholesale, we begin to cut our own throats selling at places like Wal-Mart. This all propagates thru with more demand from our company on us as salesman to sell more and work harder for our pay. It works its way up the chain into cutting costs on manufacturing, ways of distribution and also means producing an inferior product. The disease spreads throughout both sides of the equation.
Wal-Mart and their way is absolutely not healthy for the economy. People think they are saving money by shopping there, but in the long run it will have detrimental consequences.. And now, I think they are just starting to show up.
jpete wrote:To your point Lee, and maybe you are already familiar with what Wal-Mart did to Vlasic.
anthony7812 wrote:I will agree with everything you stated except for healthy economy.
anthony7812 wrote:jpete wrote:To your point Lee, and maybe you are already familiar with what Wal-Mart did to Vlasic.
If Vlasic had all thier "chips" tossed into one buyer than the inevitable was bound to happen. Big buyer(walmart), but you have to be prepared for a disruption.
jpete wrote:Yes, Vlasic could have told them to pound sand, but most companies can't do that to the worlds largest retailer.
lsayre wrote:I don't know if this is true, but I've heard rumors that loads of the stuff sold at WalMart is on consignment, so WalMart doesn't have a penny invested in the goods until after they are already sold.