|
BlackPhx -> RE: Theories: What would Wal-mart Kink be? (4/30/2008 7:51:05 AM)
|
I worked for a toy company long ago who sold to both Wal-Mart and Toys-R-Us. Both have similar practices, believe me. They both set the price that they will pay per unit for a toy, generally it means the company recieves half of it's normal profit on the item so if there is a 150% markup over cost and shipping they recieve only 75% over. Both then COMMIT to and pay for 6-10 thousand units per P.O. going to one distribution point (lowering shipping costs) making it possible for smaller companies to get their products on the shelves in larger quantities than they would normally sell. Until Toys-R-Us and Wal-Mart picked up the toy line, the company was on the verge of folding as most places would only buy a dozen units at a time and not buy again until those were sold. Unfortunately the producers of their product (line factory) insisted on more than 12 units being made at a time, so warehouse stock was HIGH.
I have friends who work for and earn a decent living at Wal-mart having started in stocking/cashiering and moved up. They are also one of the PRIMARY employers of those who are age 55-75, people who are too old to get a job elsewhere, have been forced to retire or downsized out of US companies to make room for younger cheaper employees or outsourced their work force to India. Without Wal-mart, and their ilk, most of these poeple would be struggling to live on Social Security and meager savings, buy their medications, see their doctors, pay their home taxes, etc. Many are not even eligible for SS when they are first employed and would have nothing save savings or welfare to survive on. Lowes, Home Depot, the Big Box Companies etc. all work the same way. All of them also import from China, and other countries. We, America have done a great deal to price ourselves out of the market. Even the stuff we make here, is often manufactured out of country and sent back here for assembly. We ship Steel out of country, have it formed, and then shipped back here for assembly into whever it is meant for because it costs to much to do the process here. It is cheaper to ship it elsewhere.
Check the VIN on your car and then look it up online or here http://www.autoinsurancetips.com/decoding-your-vin to know how to read it. The odds are your American made car wasn't assembled here but in Mexico or Canada. The majority of Birth Control Pills are manufactuered in Mexico. Hell even the very computer you are working on right now probably doesn't have more than 1 board that was made here including your CPU. To make all of these things cost effective and affordable to you, they are manufactuered elsewhere.
China and 3rd world coutnries are not the only countries that underpay workers, hire the underage or over work people. Go through the garment district in the NY and California Fashion areas and you will still find sweatshops where workers are paid as little as .05 per item stitched. Didn't tip your waitress last time you ate or left far less than 15-20%, well you just underpaid them, since Uncle SAM assumes you have paid a 20% tip for every ticket and these people literally LIVE on those tips since their paychecks are often in Negative numbers for the taxes subtracted for the tips. Yep that includes the guy at the coffee shop where you grabbed your cup on the way to work.
Upshot, there are good companies and bad. Walmart isn't the devil and it isn' an angel, it is just one more company striving for a share of an ever shrinking dollar. Do I agree with their practises, not really but then again I don't agree with the practises of my HMO, my Mortgage Company, The Radiology services that send my Scans to India to be read, most of the crap my government passes as laws, the actions of the TSA who tossed out a tube of toothpaste on my husband from his carry on but let a metal ruler go through (go figure I guess he was going to brush their teeth until they did what he wanted). With the rate jobs are going overseas and out of this country, I will continue to support those companies that make an effort to stay open and employ people here.
poenkitten (who expects to call IRS for information one day and here Hello my name is Hadji..I am in Dehli, How may I help you with your 1040 today?)
|
|
|
|
