New Wal-Mart logo

[GordonGekko]

Chad, I have NO problem with Capitalism whatsoever. However, do you remember the stores Wal-Mart announced and built in China? Well, U.S. companies are required to have Chinese partners in order to do business in China. In order to avoid this Wal-Mart guaranteed China a minimum volume of products from China every year. Meaning, Wal-Mart then went to its suppliers and dictated that the suppliers must begin producing their products in China or Wal-Mart would cease to purchase them. It did not matter that it was actually cheaper to manufacture some of these goods in the U.S. Wal-Mart had to have them made in China. So, the price of some of these goods went up everywhere because the suppliers could not aford to operate two seperate manufacturing facilities and ended up moving all their production to China.

Now, like everything there is some good that comes from this, Wal-Mart is now importing certain items of produce (California Raisins for one) into China. However, the net effect of this deal has been a negative for U.S. manufacturing. In addition to the damage done through the loss of manufacturing the industrial growth in China has been a major contributor to the increased costs of raw materials for the goods manufactured or purchased here in the U.S. (particularly, steel, lead, and oil).

These are just a couple of reasons people choose to avoid doing business with Wal-Mart, but that tends to be kind of like avoiding driving on pavement...it is pretty much impossible if you want to get anywhere.

I am not a Wal-Mart "hater" but I choose not to support them if I have a choice but that is a personal decision for many reasons in addition to those listed above.

[the doctor]

good analogy about driving on pavement that is especially true for Wal-Mat suppliers

Wal Mart has been known not only to dictate where products will be produced but what they will pay to sell in their stores and in some cases have all but extorted money from suppliers for shelf space versus Sams Choice products

suppliers got a very different view of Wal Mart, but the volume is obviously worth selling your soul for most

the doc

[regishay]

Yeah they do advertise but why would I drive 30 miles one way just to hassle with making walmart match a price on a package of cheese? The trip alone would cost at least 8 dollars

Well if your hungry enough i guess you could make a cheese run, but I drive by atleast one Walmart everyday. Its not out of my way if I want to pick something up, your basing your buying decision on your driving distance. If im buying food then im usually going to the local grocery but if I have to pick up dogfood, get some pictures developed, whatever my grocery store doesnt carry then im usually going to go to walmart. My point is the local grocery is not going to carry everything I need for my family and im not driving to the local mall if i can help it.

[duckter]

Man, I just wrote half a page and submitted, but it didn't take so here I am again. Whew.

Here's the deal (and I will be brief). Wal-Mart makes their money in retailing. They are the innovators and everyone else tries to keep up. 65% of purchases at Wal-Mart are unplanned (based on averages across all types of consumer groups). Due to their store layout, full pallet displays in the aisles, the areas known as "Action Alley." It's there, it's planned, and it's successful.

In most cases, they are the low-cost provider. However, they make up for it in volume. My wife is there now. I asked her 30 minutes ago what she was getting and she named-off 4 things. Bet she comes home with 10. That's it and that's real.

I am in the packaging business and have several customers who have Wal-Mart as their customers. Sure, it's tough on them, but they enjoy the volume. Our marketing and design teams are constantly working on new and different design ideas to increase the sales of our customers' products and we do a great job for them. Next time you see a Snickers display or Energizer batteries, or Maybelline, that's us.

Good luck on just coming out with only the cheese.

[hotty toddy]

I see and understand your point and do the same thing. I was just pointing out that you have to watch the prices, sometimes the small, local run stores do actually have better prices.

But everyone needs to remember:

SHOPPING AT WAL-MART CAUSES CANCER, GLOBAL WARMING, AND MONKEY POX

[cwink]

Chad, I have NO problem with Capitalism whatsoever. However, do you remember the stores Wal-Mart announced and built in China? Well, U.S. companies are required to have Chinese partners in order to do business in China. In order to avoid this Wal-Mart guaranteed China a minimum volume of products from China every year. Meaning, Wal-Mart then went to its suppliers and dictated that the suppliers must begin producing their products in China or Wal-Mart would cease to purchase them. It did not matter that it was actually cheaper to manufacture some of these goods in the U.S. Wal-Mart had to have them made in China. So, the price of some of these goods went up everywhere because the suppliers could not aford to operate two seperate manufacturing facilities and ended up moving all their production to China.

Yeah, but the root problem is not Walmart it is the stupid trade restrictions and regulations and a host of other issues..

Same issue with Gas prices. It is not the fault of the oil companies. It is the environment they opperate in.. Could they be more ethical? Sure, but would they be as profitable? No..

[olemissduckhunter]

I was recently taken to Spains grocery store in Grenada by a fellow MSDUCKER and i can say that their prices were way better than walmarts. But you have to deal with 10,000 naggers in the store at any given time.

[GordonGekko]

Chad, I have NO problem with Capitalism whatsoever. However, do you remember the stores Wal-Mart announced and built in China? Well, U.S. companies are required to have Chinese partners in order to do business in China. In order to avoid this Wal-Mart guaranteed China a minimum volume of products from China every year. Meaning, Wal-Mart then went to its suppliers and dictated that the suppliers must begin producing their products in China or Wal-Mart would cease to purchase them. It did not matter that it was actually cheaper to manufacture some of these goods in the U.S. Wal-Mart had to have them made in China. So, the price of some of these goods went up everywhere because the suppliers could not aford to operate two seperate manufacturing facilities and ended up moving all their production to China.

Yeah, but the root problem is not Walmart it is the stupid trade restrictions and regulations and a host of other issues..

You're right, if WalMart wanted to get into China they had to play by China's restrictions and regulations. But, WalMart made the decision to sacrifice its U.S. suppliers so they could gain a toe hold in a market that currently represents less than 1% of their global sales (WalMart sells 2.6 Billion dollars of goods annually in China, they sell 312 Billion dollars annually worldwide). Like I said I am not a "WalMart hater" but they have done thier home country no favors (neither have many of the other manufacturers though).

[duckter]

But, WalMart made the decision to sacrifice its U.S. suppliers so they could gain a toe hold in a market that currently represents less than 1% of their global sales (WalMart sells 2.6 Billion dollars of goods annually in China, they sell 312 Billion dollars annually worldwide).

Many of their once domestic suppliers have moved their operations to China to take advantage of the cheap labor force. Inflation is running at 11% over there right now. What comes around goes around. We're actually seeing a lot of the manufacturing that went to the Far East moving back to Mexico.

[pstone]

Can't beat thier Prices...but like you said....

I was recently taken to Spains grocery store in Grenada by a fellow MSDUCKER and i can say that their prices were way better than walmarts. But you have to deal with 10,000 naggers in the store at any given time.

[Jeff]

Wal Mart is definetly cheaper on some things. HOWEVER you get what you pay for. Go buy an Abu Garcia 5500C3 from Wal-Mart, and then go buy one from your local sporting goods store. Then take them both apart. You will notice plastic and inferior parts in the Wal-mart reel and better stuff in the private label reel.

I don't like Wal-Mart due to personal experience when I first got out of school and practiced Optometry in one for a short while. My big reason is when you buy from Wal-Mart you support China to a much greater extent than the US. Gordon outlayed that pretty well.

I peronally also don't buy anything that doesn't come from a mom and pop type store, if I pay a little more so be it, but I keep people in buisness that will take care of me. That's the way I do it, probably isn't for everyone else, but that's my deal.

[GordonGekko]

Duckter you're right. But, many of those suppliers were told by Wal-Mart "either make it in China or we won't buy it from you" even if they could make it cheaper in the U.S. And because of the deal with the Chinese government some of these suppliers will not be able to leave China unless they want to quit selling to Wal-Mart. But, you're right that being made in China isn't as cheap as it once was.

Jeff, amen brother. That pretty much outlines the reason I avoid Wal-Mart outside of the foreign/domestic issue. Many of the products just are not good quality in my experience.

[Jeff]

What can I say we agree once again.

[Double R 2]

I don't hate Walmart but hate shopping there. maybe once in a blue moon. Locally, my wife (who does most household shopping) fares best shopping at many different retailers including Sam's - and avoids Walmart almost entirely.

[mudsucker]

Old Sam Walton is SPINNING in his grave with the deals with China, etc.