wistfulmale
Posts: 15
Joined: 12/6/2007 Status: offline
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quote:
ORIGINAL: FatDomDaddy Wait a second... nobody is putting a gun to Black and Deacker, Remmington, Sony, Lexmark, General Mills, Proctor and Gamble, or any other manufactuer to put stuff in these stores. And if Wal-Mart says, it wants 1,000,000 wax on widgets and they will pay no more that 4 dollars a peice for them, the wax on widget co. can always say no. What you're not taking into consideration is that WalMart is THE 800 lb gorilla in mass merchandisers. I've worked for a long time in CPG companies, I know how these guys operate. And yes, you can walk away from them, but it'll hurt. And hurt A LOT. Case in point: Rubbermaid. Rubbermaid went to WalMart, saying, "Look, our products are made from petroleum-based materials. The prices since we've signed that contract have gone up. Our costs have gone up. If we can't renegotiate the contract, we're going to lose money. If we can't sell to you, we're going to lose money." WalMart told them that the contract was the contract. Either honor it or they wouldn't sell Rubbermaid's stuff that year. Rubbermaid walked. And lost about 80% of their buisness. They wound up having to "merge" with a competitor to stay afloat. http://www.usatoday.com/money/industries/retail/2003-01-28-walmartnation_x.htm Yes, you can walk away, but it hurts a whole, whole lot.
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