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Nobody takes s*** from Wal-Mart

WalMart was not always the retail giant they are today. At some point it was just another small business. Why then did WalMart become the countries largest retailer, while Five and Dimes didn't? One word; distribution.

Sam Walton's great idea wasn't a supercenter, a one-stop shop, or even a great location. He invented the world's most efficient and advanced distribution system. It's so good at effectively moving goods that the US Military implemented the exact same system some years back.

Lets say you have a great product, call it Wonder Hose. This thing is awesome, but you can't find anywhere to sell it. It costs you $5 to make each one. You call WalMart, and here's the deal you get.

WM: Sounds good. You give us 50,000 of them. We'll handle shipping, and promise that 4,300 stores will carry it. We can offer 15.7 million shoppers a day. The catch is, we won't pay you for 60 days and no interest, but we'll give you $10 a piece for them. Everyone that doesn't sell, you eat the cost. If they sell out, we'll buy another million of them.

Thus, if it's a good product and sells well you just made $5 million in a few months. You didn't pay for retail space, sales wages, or shipping. Plus, you only gambled $250,000 of your money. That's less than an infomercial, or opening your own store.

That's why WalMart is such a retail force. They've got it figured out. Also every dollar invested in WalMart in 1970 would have turned into $7,000,000 today!
 
kuyu said:
Everyone that doesn't sell, you eat the cost.
Click to expand...

What do you mean by this? If you sell a product at Stop & Shop (local grocery chain), you would be required to buy back every one that did not sell, at their retail price, not the price you sold it to Stop & Shop for.
 
I hope this is at least somewhat on-topic:

Ok, I can understand why people dislike shopping at WalMart. I can understand not liking the business practices.

One thing though about the arguement against WalMart always bugs me though. Why is everyone is so quick to defend the mom and pop businesses? I guess you guys have some good ones where you are, but in my area I'd put many of the mom and pop operations well below WalMart on the scumbag scale.

In my town we don't have a WalMart, but there are 2 within a 15 mile radius. What we do have is one particular mom and pop that almost literally owns half the town. They're into retail, auto repair, building supplies, real estate, and probably other stuff too. That seems like a bit much to me.

When winter storms or wayward hurricanes blow through, guess who the price gougers are for tools and supplies. It isn't WalMart. Nope, it's mom and pop.

When our county finally decided we needed (understatement) a larger, more modern courthouse in a different area of town, guess who was there to try and stand in the way. Mom and pop shops. The big guys I mentioned before, the photo studio, the flower shop, etc. They feared for their businesses, and they weren't too concerned with what the rest of the county thought. Fortunately, they didn't get their way. They're all still around of course. I have no idea how though. They're all closed by the time most people get off work anyway.

So, anyway, as bad as WalMart may be, sometimes they're actually an improvement over the mom and pops.
 
kuyu said:
WalMart was not always the retail giant they are today. At some point it was just another small business. Why then did WalMart become the countries largest retailer, while Five and Dimes didn't? One word; distribution.

Sam Walton's great idea wasn't a supercenter, a one-stop shop, or even a great location. He invented the world's most efficient and advanced distribution system. It's so good at effectively moving goods that the US Military implemented the exact same system some years back.

Lets say you have a great product, call it Wonder Hose. This thing is awesome, but you can't find anywhere to sell it. It costs you $5 to make each one. You call WalMart, and here's the deal you get.

WM: Sounds good. You give us 50,000 of them. We'll handle shipping, and promise that 4,300 stores will carry it. We can offer 15.7 million shoppers a day. The catch is, we won't pay you for 60 days and no interest, but we'll give you $10 a piece for them. Everyone that doesn't sell, you eat the cost. If they sell out, we'll buy another million of them.

Thus, if it's a good product and sells well you just made $5 million in a few months. You didn't pay for retail space, sales wages, or shipping. Plus, you only gambled $250,000 of your money. That's less than an infomercial, or opening your own store.

That's why WalMart is such a retail force. They've got it figured out. Also every dollar invested in WalMart in 1970 would have turned into $7,000,000 today!
Click to expand...
While those first few may be bought for $10 ...

Over the next million that $10 may fall to $5.75, after Wal-Mart has you hooked and they are your main source of business and you are fighting to make your factory in the US as efficient as possible to keep making a huge profit.

But one day they will offer you $5 or less, while your cost is still $5.

What do you do?

You look at China to make them for you ... but eventually Wal-Mart cost cutting will eventually start offering you less and less, til another knock-off supplier eventually replaces you for far less than you can make them.

Wal-Mart cost cutting is driving the trade gap and the move to outsourcing...
 
Sun Baked said:
While those first few may be bought for $10 ...

Over the next million that $10 may fall to $5.75, after Wal-Mart has you hooked and they are your main source of business and you are fighting to make your factory in the US as efficient as possible to keep making a huge profit.

But one day they will offer you $5 or less, while your cost is still $5.

What do you do?

You look at China to make them for you ... but eventually Wal-Mart cost cutting will eventually start offering you less and less, til another knock-off supplier eventually replaces you for far less than you can make them.

Wal-Mart cost cutting is driving the trade gap and the move to outsourcing...
Click to expand...
That's the most f'ed-up part of how Wal-Mart does business... they want to derive ALL of the profit while assuming NONE of the risk (i.e., the cost of actually producing the goods). The idiot vendors who supply them with goods take ALL of the risk, while Wal-Mart demands to audit their books to see if they (Wal-Mart) can force them (the vendors) to lower their costs even further.

I'm all for capitalism, but Wal-Mart has gone too far. Their suppliers should cut them off, and they would if they really understood how they were being used.
 
Here are some sections from a story in the local Seattle Weekly paper about Wal-Mart and Costco. Well, mostly about Costco anyway.

Company for the People
If Wal-Mart represents red-state America's ruthless race to the bottom line, then Issaquah-based retailer Costco offers a blue-state alternative. The company is proving Wall Street wrong by adhering to a radical idea: Treating customers and employees right is good business.

According to Wal-Mart, its 1.2 million U.S. employees earn an average of $9.99 an hour, less than two thirds of Costco's average. Only 42 percent of Wal-Mart's workers have health care coverage through the company, compared with more than 83 percent at Costco.

When I ask him about the way Costco treats workers, he says, "It absolutely makes good business sense. Most people agree that we're the lowest-cost provider. Yet we pay the highest wages. So it must mean we get better productivity. It's axiomatic in our business—you get what you pay for."

The wage at Costco starts at $10 an hour and, as of next March, rises to $18.32— excluding twice a year bonuses of between $2,000 and $3,000 for those at the top wage for more than a year. In comparison, unionized grocery clerks around Puget Sound, very good jobs as retail goes, start at $7.73 an hour and top out at $18. (Wal-Mart does not share its wage scale.)
Click to expand...

Link to story
 
notjustjay said:
I have a friend who refuses to shop at Costco. He doesn't like the exclusivity of the memberships.

I don't recall the exact criteria but there are particular criteria you have to meet in order to be a Costco member. (I don't qualify, for example, so I have to go with my parents or sneak in.)
.
Click to expand...

That's why I like BJ's Membership Store. You don't have to have a membership to go in and look. And, I think you can make one purchase (with a 10% surcharge) without a membership.

According to Costco's websit there is no criteria for joining...you just pay.
 
mac-er said:
According to Costco's websit there is no criteria for joining...you just pay.
Click to expand...

Hmm, you're right.

Last time I was at the store I saw a sign that said "Who can join?" and it said "You can join if you are a:" and listed two or three things. Dang, can't remember what. I'll have to check it again next time I'm there.
 
notjustjay said:
Hmm, you're right.

Last time I was at the store I saw a sign that said "Who can join?" and it said "You can join if you are a:" and listed two or three things. Dang, can't remember what. I'll have to check it again next time I'm there.
Click to expand...

well, when I got my membership, I think the 2 or 3 things were:
1: human
2: person with $30
3: able to get through the front door?

I know costco is okay business-wise (especially vs walmart), but I still feel kind of dirty shopping there. It's just the taste of greed that stockpiling leaves in my mouth.
 
Black&Tan said:
What do you mean by this? If you sell a product at Stop & Shop (local grocery chain), you would be required to buy back every one that did not sell, at their retail price, not the price you sold it to Stop & Shop for.
Click to expand...

No, not retail. But you had to pay to produce all the goods. If you make 50,000 Wonder Hoses for WalMart and they only sell 25,000 of them, then you get the other 25k sent back to you. At $5/unit thats a $125,000.

I'm not a huge fan of WalMart, but they've got retail figured out. The reason their suppliers won't cut them off is simple. 15.7 million customers a day! WalMart accounts for over 15% of Procter and Gamble's business and 24% of all toothpaste sales in America. They are #1 in groceries and jewelry.

Their suppliers stay onboard because companies like P&G can't afford a 15% drop in sales overnight. They may not be the fairest bunch, but if I had a great product you can bet that I'd want a piece of that 15 million customer market.
 
joepunk said:
Here are some sections from a story in the local Seattle Weekly paper about Wal-Mart and Costco. Well, mostly about Costco anyway.



Link to story
Click to expand...
I've heard a lot of similar good stuff about Costco. Their employee also get decent benefits, and don't have to work the extra hours (for base pay) that Wal-Mart's employees do. Consequently, their employee retention is way higher. And the consequence of that is lower overhead...which is what allows them to offer better pay and benefits in the first place.

Wally World may dominate the retail landscape, but if you ask me, it's Costco that has it figured out right.
 
As much as I don't like Walmart, I think it was perfectly fine for them to try to charge the couple $175. Yes, the couple made a mistake, but that mistake probably cost Walmart $175 in legal costs, to get a lawyer and put together evidence, etc.

If I accidentally do something that ends up costing you $175, are you a prick for trying to get that money back? No. I have enough personal responsibility that I would offer you that money up front.
 
Nope, wrong kind of fertilizer.

This is just a load of **** perfect for filling up the CEOs nice new luxury vehicle, or placing a really farm fresh load in a big steaming pile in the middle of their office.


ACTUALLY...The CEO drives a VW bug...I know because his parking spot is around the corner from mine. After reading this thread, I can't believe so many people could be so uneducated. so sad...
 
hogfan85 said:
Nope, wrong kind of fertilizer.

This is just a load of **** perfect for filling up the CEOs nice new luxury vehicle, or placing a really farm fresh load in a big steaming pile in the middle of their office.


ACTUALLY...The CEO drives a VW bug...I know because his parking spot is around the corner from mine. After reading this thread, I can't believe so many people could be so uneducated. so sad...
Click to expand...

I'm already educated. Wal-Mart is a horrible company.
 
hogfan85 said:
ACTUALLY...The CEO drives a VW bug...I know because his parking spot is around the corner from mine. After reading this thread, I can't believe so many people could be so uneducated. so sad...
Click to expand...
Since you know so much about them, tell us what kind of car the CFO drives at 110MPH on the freeway for giggles and kicks.
 
I was involved with this chick that was very much pro-Wal-Mart. Everytime I (or somebody else) would bring up something that Wal-Mart was doing that was a bit shady, she would be ultra defensive. Well, one day I dragged her ass into a Target and it took her all of about 10 seconds to realize just how much crappier Wal-Mart was in comparison, although she didn't exactly put it that way.

I feel dirty walking into Evil Mart. K-Mart sucks but I make it a point to shop there just so I am not feeding the big smiley faced monster.

Any company who makes it publicly known that they only competition they want is from themselves is evil.
 
hogfan85 said:
ACTUALLY...The CEO drives a VW bug...I know because his parking spot is around the corner from mine. After reading this thread, I can't believe so many people could be so uneducated. so sad...
Click to expand...

So I take it that the Wally World big wigs now have people searching the internet looking for those who dare talk about the evils of their corporation.

I think that we anti-Walmarters should all probably keep an eye out for their minions. Arn's very life could be in danger for allowing us to post about the evils of WalMart. If you all don't see me tomorrow, avenge my death!
 
NewsguyMark said:
It isn't just employees that Wally World treats badly. We JUST had one open up across the street from our home. LITERALLY across the street.

First it was 18 months of construction hell, complete with blasting. Now it's traffic and 2:00 a.m. street sweepers....

Click here to read all about it: http://www.putnamlive.com/LivingWithWalMartConstruction.html
Click to expand...

3 years, come on. Do you need posts that bad?

jon

edit: I see now, you're linking to your site...
 
Wall-mart did something like this to me too

I was on a trip and stocked up on a whole bunch of snacks, not a huge amount, but respectable, I also picked up a dvd of total recall. loaded everything onto the conveyor, paid and started to leave. on my leaving, the alarm went off, and they found the dvd not paid for or scanned. they let me go and told me not to come back. I was so insulted to be accused of stealing when it was their cashiers fault. anyway. BOO wallmart
 
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