Comments on: How Does Wal-Mart Make Any Money? https://www.jerseysmarts.com/2008/11/10/how-does-wal-mart-make-any-money/ Joe Palazzolo's Blog Wed, 10 Dec 2008 01:53:57 +0000 hourly 1 https://wordpress.org/?v=6.7.2 By: Joe https://www.jerseysmarts.com/2008/11/10/how-does-wal-mart-make-any-money/comment-page-1/#comment-1997 Tue, 11 Nov 2008 17:58:34 +0000 http://blog.thebalrogslair.com/2008/11/10/how-does-wal-mart-make-any-money/#comment-1997 Yeah, I’ve studied up on Wal-Mart’s supply chain and leverage with manufacturers. What amazes me is that people are actually against this organization when they are battling for the lowest prices for their consumers. It’s mind-boggling in some respects.

]]> By: Marty https://www.jerseysmarts.com/2008/11/10/how-does-wal-mart-make-any-money/comment-page-1/#comment-1998 Tue, 11 Nov 2008 15:59:08 +0000 http://blog.thebalrogslair.com/2008/11/10/how-does-wal-mart-make-any-money/#comment-1998 One of the reasons why Wal-Mart can offer low prices is because they can tell their vendors they will only purchase a line of products for a specific price. Wal-Mart has the advantage of buying a entire stock of Pepsi at a discount price compared to grocery store chain in your area. The vendor does not want to give Wal-Mart their price, but Wal-Mart uses the tactic, “ok then, we just won’t buy from you.” The tactic has worked for them because the vendor is lead into believing that his company will lose more money if his product isn’t on the shelves of Wal-Mart. To them, taking a hit is worth just being on Wal-Mart’s shelves.

I know that because of my years at a grocery store chain owned by Safeway, which feared Wal-Mart heavily. Also, my mother works at Wal-Mart. Some of the bad stuff you hear about Wal-Mart may be true in some cases, though I am lead to believe that some of it is exaggerated, as everything usually is in some capacity.

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