Why Are Walmart Prices So Cheap?

[iamwhatiseem]

wal-mart is soaked in the blood and sweat of slave labor

No their not.
The consumers who shop there are.
Look, it is not an unknown fact what Wal-Mart is.
But the American consumer simply does not care - at all.
If it is cheap - they will buy it no matter what. And WalMart knows this more than anyone.

loosecannon is dead accurate. We are too lazy and self absorbed to even consider what our choices do to each other.

 

[boedicca]

No...did I say they was?
I tried to get a photo of RCA and G.E. plants in Mexico - but they are obviously hard to get.
Sony built the plant in Baja to keep manufacturing low to provide the cheap TV's we want.

I just assumed since you posted a picture of a Sony plant, that it was Sony TVs on sale.

I hate WalMart for what they have done to community business all across the US. I really, really do. But as big as they are, I still find ways to kick their ass every day.

But WalMart may very well be the ultimate American success story and Sam Walton the King of the American Dream.

Walmart is a success?
I guess if you consider store profits of 0.5% - 2% profits and where many workers are on financial aid to supplement their income a success.

WMT has a market cap of approx. $195B. That qualifies as success.

Last fiscal year, it had net profit of 3.5%, with operating margins of 6%. That is excellent performance for a mass market retailer.

I'd like to see a valid source for the stat that Many Workers are on financial aid to supplement their income - and no fair counting the earned income tax credit. Government sponsored income transfer payments via the tax code is not Aid.

 

[iamwhatiseem]

I just assumed since you posted a picture of a Sony plant, that it was Sony TVs on sale.

I hate WalMart for what they have done to community business all across the US. I really, really do. But as big as they are, I still find ways to kick their ass every day.

But WalMart may very well be the ultimate American success story and Sam Walton the King of the American Dream.

Walmart is a success?
I guess if you consider store profits of 0.5% - 2% profits and where many workers are on financial aid to supplement their income a success.

WMT has a market cap of approx. $195B. That qualifies as success.

Last fiscal year, it had net profit of 3.5%, with operating margins of 6%. That is excellent performance for a mass market retailer.

Nobody said it wasn't....for a mass market retailer.
But then again - everything...everything...is switching to mass market sales.

 

[boedicca]

That's not true. Everything is not switching to mass market.

I patronize quite a few locally owned and operated businesses in my neighborhood, and often by produce from local farmers. The internet also provides a means for small businesses to extend their market reach.

Now, how about backing up that financial aid claim?

 

[code1211]

Whahooo!
Man this is great! $200 for a 32" HD LCD TV...how do they do it?

Well that is easy..first they had to close all the plants in the U.S. where greedy American workers use to work(picture on the left of old American Plant)...but screw them right?

Then they opened massive plants in Mexico (Sony in Baja Mexico photo below) and India.

But hey...Walmart keeps them prices down for the rest of us!

Walmart Buys very, very well, but, no, they do not close any factories of any suppliers.

Their typical negotiation technique is pretty much to tell the supplier that they want to sell an item at a particular price. If that supplier says that he cannot lower his price far enough to do that, then they say that that's just fine and go to any of the other 10 companies pounding on their doors to get the chance to use the high traffic and huge customer base of WalMart to move their products.

They also revolutionized the distribution process and built a very motivated and loyal workforce to achieve their goals. Sam Walton figured out a way to do it better, cheaper and faster than the competition so, of course, Liberals want to penalize him rather than examine how he did it so it can be duplicated and used to make the entire manufacturing base better, cheaper and faster.

Brilliant!

 

[boedicca]

Yes, that is what they have done.

Personally, I can't stand shopping at WMT. But they do do what they do quite well.

 

[Big Black Dog]

Let's see now... Do I want to pay $200.00 for a tv that was made in Mexico or do I want to pay over $400.00 for a tv that was made in America, by union workers, who all demand to have high wages, terrific benefits, and all the perks that they can pass on to the American consumer? I'll buy the $200.00 tv every time. Fuck the unions and the people who bitch about not buying "American". Union labor caused this problem - not Wal-Mart or the American consumer. If the union labor folks were not so greedy, there would still be plenty of jobs available in the U.S.. Don't whine to me about a problem that the unions created.

 

[code1211]

Yes, that is what they have done.

Personally, I can't stand shopping at WMT. But they do do what they do quite well.

Mrs. Code hates shopping at WalMart, too. I don't get it. I shop for efficiency and quality.

If I'm Buying a TV, as a Frinstance, the local Best Buys or HH Greggs are peopled with folks who know about as much about the product as I do. Am i paying extra to get that?

TV's are pretty much just a commodity now and the manufacturers are the guys who do the warrenties so where is the advantage in shopping at the add 20% outlets?

However, if it's for home improvement, I go to Lowes for the selection and just walking through their tool section is like checking out the Playboys in the magazine store about a million years ago.

After walking behind several slow moving women in the crowded aisles of Walmart, and I've never checked to confirm this, I can't imagine that they have a very wide selection in the Petites section of Women's Clothes.

They do have a great Bakery Selection, however.

 

[boedicca]

I like to do my own baking.

For appliances and larger electronics, I find the best price, and go to the local guys and ask them to match it. They almost always do. And they provide excellent service above and beyond the chains.

 

[xotoxi]

But WalMart may very well be the ultimate American success story and Sam Walton the King of the American Dream.

When the American Dream gets too big, it can become an American Cancer.

 

[iamwhatiseem]

Let's see now... Do I want to pay $200.00 for a tv that was made in Mexico or do I want to pay over $400.00 for a tv that was made in America, by union workers, who all demand to have high wages, terrific benefits, and all the perks that they can pass on to the American consumer? I'll buy the $200.00 tv every time. Fuck the unions and the people who bitch about not buying "American". Union labor caused this problem - not Wal-Mart or the American consumer. If the union labor folks were not so greedy, there would still be plenty of jobs available in the U.S.. Don't whine to me about a problem that the unions created.

What?
Unions only exist in a minority of businesses anymore.
WalMart doesn't sell cars or do plumbing/electrical/contracting work or provide freight services.

 

[boedicca]

It's a sad commentary when running a successful business that provides good value to millions of consumers is considered a cancer.

 

[Luissa]

I have thought about boycotting Walmart before, but then I remembered with the economy the way it is now, I don't want hurt anymore American workers.They have us right where they want.
How can I boycott a 70 year old who was screwed over on their retirement and can't find a job anywhere else?

 

[iamwhatiseem]

Whahooo!
Man this is great! $200 for a 32" HD LCD TV...how do they do it?

Well that is easy..first they had to close all the plants in the U.S. where greedy American workers use to work(picture on the left of old American Plant)...but screw them right?

Then they opened massive plants in Mexico (Sony in Baja Mexico photo below) and India.

But hey...Walmart keeps them prices down for the rest of us!

Walmart Buys very, very well, but, no, they do not close any factories of any suppliers.

Their typical negotiation technique is pretty much to tell the supplier that they want to sell an item at a particular price. If that supplier says that he cannot lower his price far enough to do that, then they say that that's just fine and go to any of the other 10 companies pounding on their doors to get the chance to use the high traffic and huge customer base of WalMart to move their products.

They also revolutionized the distribution process and built a very motivated and loyal workforce to achieve their goals. Sam Walton figured out a way to do it better, cheaper and faster than the competition so, of course, Liberals want to penalize him rather than examine how he did it so it can be duplicated and used to make the entire manufacturing base better, cheaper and faster.

Brilliant!

Pretty much everything, with the exception on the bit about Walton, is wrong.
That is not at all whatsoever at how WalMart conducts business with vendors - period.

 

[code1211]

Whahooo!
Man this is great! $200 for a 32" HD LCD TV...how do they do it?

Well that is easy..first they had to close all the plants in the U.S. where greedy American workers use to work(picture on the left of old American Plant)...but screw them right?

Then they opened massive plants in Mexico (Sony in Baja Mexico photo below) and India.

But hey...Walmart keeps them prices down for the rest of us!

Walmart Buys very, very well, but, no, they do not close any factories of any suppliers.

Their typical negotiation technique is pretty much to tell the supplier that they want to sell an item at a particular price. If that supplier says that he cannot lower his price far enough to do that, then they say that that's just fine and go to any of the other 10 companies pounding on their doors to get the chance to use the high traffic and huge customer base of WalMart to move their products.

They also revolutionized the distribution process and built a very motivated and loyal workforce to achieve their goals. Sam Walton figured out a way to do it better, cheaper and faster than the competition so, of course, Liberals want to penalize him rather than examine how he did it so it can be duplicated and used to make the entire manufacturing base better, cheaper and faster.

Brilliant!

Pretty much everything, with the exception on the bit about Walton, is wrong.
That is not at all whatsoever at how WalMart conducts business with vendors - period.

Upon what do you base that? I've been with two different companies and that is exactly how they negotiated with me.

Are you also saying that they did not revolutionize the distribution process?

 

[iamwhatiseem]

Walmart Buys very, very well, but, no, they do not close any factories of any suppliers.

Their typical negotiation technique is pretty much to tell the supplier that they want to sell an item at a particular price. If that supplier says that he cannot lower his price far enough to do that, then they say that that's just fine and go to any of the other 10 companies pounding on their doors to get the chance to use the high traffic and huge customer base of WalMart to move their products.

They also revolutionized the distribution process and built a very motivated and loyal workforce to achieve their goals. Sam Walton figured out a way to do it better, cheaper and faster than the competition so, of course, Liberals want to penalize him rather than examine how he did it so it can be duplicated and used to make the entire manufacturing base better, cheaper and faster.

Brilliant!

Pretty much everything, with the exception on the bit about Walton, is wrong.
That is not at all whatsoever at how WalMart conducts business with vendors - period.

Upon what do you base that? I've been with two different companies and that is exactly how they negotiated with me.

Are you also saying that they did not revolutionize the distribution process?

Of course they did.
The effect of Walmart is felt even in industries that have nothing to do with them. In fact, WalMart affects industries that do not sell to them, more than those that do.
How Walmart deals with large vendors is extraordinary. So far beyond how any other business has ever done in the history of markets.
Walmart conducts business with vendors in this way:

1) Here is the price we want to sell your item for.
2) Here is what we will pay for it.
3) We understand that this is 20% below what you can sell it for and make a profit, but we want YOUR product on our shelves.
To make this happen, WalMart will...
a) provide all of the transportation costs, we will pick your product up at your factory, and we will distribute it all over the nation.
What you need to do...
a) You are buying your raw materials from Company X. We located a manufacturer in Indonesia that can provide these materials for 15% less. You will need to buy those materials from them in order to meet our price.
b) Unfortunately your assembly plant in Georgia costs $2.00 per unit to assemble. In order for us to be able to sell your product for the above price, that has to be no more than $1.20 per unit. We would like for you to be able to find a way to do that in Georgia, if not we have taken the liberty of discussing your product with Company Y in Guan Mexico. They have agreed to assemble your product for $1.15.
c) We will assume that $.05 savings, we will sell the item for $.03 less and will keep the other $.02.

Any questions?

 

[code1211]

Pretty much everything, with the exception on the bit about Walton, is wrong.
That is not at all whatsoever at how WalMart conducts business with vendors - period.

Upon what do you base that? I've been with two different companies and that is exactly how they negotiated with me.

Are you also saying that they did not revolutionize the distribution process?

Of course they did.
The effect of Walmart is felt even in industries that have nothing to do with them. In fact, WalMart affects industries that do not sell to them, more than those that do.
How Walmart deals with large vendors is extraordinary. So far beyond how any other business has ever done in the history of markets.
Walmart conducts business with vendors in this way:

1) Here is the price we want to sell your item for.
2) Here is what we will pay for it.
3) We understand that this is 20% below what you can sell it for and make a profit, but we want YOUR product on our shelves.
To make this happen, WalMart will...
a) provide all of the transportation costs, we will pick your product up at your factory, and we will distribute it all over the nation.
What you need to do...
a) You are buying your raw materials from Company X. We located a manufacturer in Indonesia that can provide these materials for 15% less. You will need to buy those materials from them in order to meet our price.
b) Unfortunately your assembly plant in Georgia costs $2.00 per unit to assemble. In order for us to be able to sell your product for the above price, that has to be no more than $1.20 per unit. We would like for you to be able to find a way to do that in Georgia, if not we have taken the liberty of discussing your product with Company Y in Guan Mexico. They have agreed to assemble your product for $1.15.
c) We will assume that $.05 savings, we will sell the item for $.03 less and will keep the other $.02.

Any questions?

Yes. Will you please provide the link to the source of this or the name of the doctor that prescribes your meds?

 

[iamwhatiseem]

Upon what do you base that? I've been with two different companies and that is exactly how they negotiated with me.

Are you also saying that they did not revolutionize the distribution process?

Of course they did.
The effect of Walmart is felt even in industries that have nothing to do with them. In fact, WalMart affects industries that do not sell to them, more than those that do.
How Walmart deals with large vendors is extraordinary. So far beyond how any other business has ever done in the history of markets.
Walmart conducts business with vendors in this way:

1) Here is the price we want to sell your item for.
2) Here is what we will pay for it.
3) We understand that this is 20% below what you can sell it for and make a profit, but we want YOUR product on our shelves.
To make this happen, WalMart will...
a) provide all of the transportation costs, we will pick your product up at your factory, and we will distribute it all over the nation.
What you need to do...
a) You are buying your raw materials from Company X. We located a manufacturer in Indonesia that can provide these materials for 15% less. You will need to buy those materials from them in order to meet our price.
b) Unfortunately your assembly plant in Georgia costs $2.00 per unit to assemble. In order for us to be able to sell your product for the above price, that has to be no more than $1.20 per unit. We would like for you to be able to find a way to do that in Georgia, if not we have taken the liberty of discussing your product with Company Y in Guan Mexico. They have agreed to assemble your product for $1.15.
c) We will assume that $.05 savings, we will sell the item for $.03 less and will keep the other $.02.

Any questions?

Yes. Will you please provide the link to the source of this or the name of the doctor that prescribes your meds?

Resorting to insults is the first (and usually the last) method of debate when someone has nothing else to stand on.
This is how WalMart conducts business everyday with all major vendors.
Since it is obvious you don't know this, then your "knowledge" on the subject is found wanting.

 

[blu]

It's a sad commentary when running a successful business that provides good value to millions of consumers is considered a cancer.

most people are against slavery

 

[blu]

I have thought about boycotting Walmart before, but then I remembered with the economy the way it is now, I don't want hurt anymore American workers.They have us right where they want.
How can I boycott a 70 year old who was screwed over on their retirement and can't find a job anywhere else?

the 70 year old should have better planned his/her life as they had teh oppurtunity to do. the children performing slave labor for wal mart have no choice