Wal Martization of the US

Online Sheriff \"Murph\"

WHat does the card costing them,the gift certificate is the best invention in the world for the retailer (give me money now, then get you stuff later) heck anything they should be paying minimal intrest on that money !!!


murph' (the party goes foward)

Mike T., Swampeast MO

The W-M/H-D venture...

...is yet another example of how the Wal-Mart business model continues to grow.

With a philosophy of "always the low price" and goal to truly eliminate competition in whatever they choose to sell, Wal-Mart has succeeded admirably. Small general retail is a true impossibility except in the most remote areas. Traditional wholesalers have suffered terribly as well. Wal-Mart has an avowed belief that they have a God-given right to buy (and sell) everything for less than anyone else. Their phenomenal size lets them do this--the holdouts either continue to loose market share and eventually fold, or they finally give in.

Sears (once the world's largest retailer) had a very different philosophy. They did not desire to be the cheapest. They built their empire on loyalty, service, quality and availability. How well they succeeded at this is a matter of opinion, but the difference in business model is what matters.

Wal-Mart and their kin have almost completely destroyed consumer loyalty.

Following the Wal-Mart business model, the mega home improvement chains are out to do the exact same thing. When a company like Home Depot lets it be known that they are shopping for say a boiler supplier, the manufacturers first groan and then realize that, "someone's gonna' cave--it probably better be me lest my company is destroyed." They fully realize that they will loose some (much) of their traditional wholesale market, but feel that the sheer volume made possible by the giants will more than make up for the loss. They hope for a gain in market share and destruction of their traditional competitors--both made possible by mass marketers selling at low prices.

I won't say that Wal-Mart is all bad since from a purely price point of view I guess they are very good. (Personally though I doubt I enter a Wal-Mart more than twice per year--and then only as an utter last resort.) As usual though, I'm in the vast minority on this.

Except for prices, that business model is just plain bad. When price is the only concern, choice and quality both suffer. That's why middle-of-the-road goods are increasingly hard to find and we are left only with mass merchandised junk and extreme high-end out of reach of the vast majority.

I'm also in small, specialty retail and trust me when I say that last sentence becomes more true every time I go to "market" to buy for my store.

If the anti-trust wing of the government doesn't wake up and prevent Wal-Mart from purchasing banks (the REAL purpose of this is so they won't have to pay the credit card fees that EVERY OTHER retailer has to pay) Wal-Mart won't be the nation's largest retailer--it will be the nation's nearly ONLY retailer of general merchandise and food and used cars and heaven knows what else.

Hats off to Vermont (I believe) where Wal-Mart does not exist because they have seen the destruction that they cause.

Mark J Strawcutter

you get what you pay for

>Except for prices, that business model is just plain bad.
>When price is the only concern, choice and quality both
>suffer. That's why middle-of-the-road goods are
>increasingly hard to find and we are left only with mass
>merchandised junk and extreme high-end out of reach of the
>vast majority.

I have long contended (and my wife is finally starting to believe) that their "low price" claim is a sham. When you truly do an apples-apples comparison, the price difference is minimal.

Take something as simple as donuts. Wal-mart donuts are less expensive to purchase than Dunkin donuts, but aren't nearly as good - poor shortening, thin/less glaze etc.

Wal-mart sez "look, we have widgets for $1.99 and Sears charges $2.99". What they don't mention is that the Sears widget is stronger, will last longer and work better, and if it breaks they will replace it free.

>If the anti-trust wing of the government doesn't wake up
>and prevent Wal-Mart from purchasing banks (the REAL
>purpose of this is so they won't have to pay the credit
>card fees that EVERY OTHER retailer has to pay) Wal-Mart
>won't be the nation's largest retailer--it will be the
>nation's nearly ONLY retailer of general merchandise and
>food and used cars and heaven knows what else.

The fine-print on a recent insert with my DiscoverCard statement informed me that the cash-back rate for Wal-mart purchases will now be only half (or perhaps 1/4) of what it is for other stores.

Mark

Mike Kraft

An educated consumer...............

is our best customer.I think the big sham of the Wal-Mart,Super Wal-Mart, Sams Club etc. is the bulk.The goods on the shelves are "bulk" and the consumer is overwhelmed with selection.Fine print is where its at.We are led down the isles of stuff and see anything and everything we could need.Same with the home center box.The savings are hiding...camoflauged.

We allow the bulk to convince us that we are being smart consumers.So full carts and long check-out lines.Sheep being led.Dunno.......apples to apples.......I agree it aint happening.

Mike from Swampeast............Great Post!

cheese

Mike Riggs

I am a firm believer in "You get what you pay for". Years ago I supplied some King mini-kitchens to a motel owner. They were high dollar, high quality units. When it came time to do another section he wanted cheaper. I found him some that were considerably less expensive but that I was unfamiliar with. He went with the price. When he went to install them he came back to me complaining that these units were so flimsy that he barely touched them and they dented, the faucets were plastic, etc. He than asked for a credit since they weren't as good as the King. I reminded him that he only asked if he could get a cheaper unit and that's exactly what he got!

Mike Kraft

So Mike

As a wholesale person whats your take on the WM move into the orange box?I spoke to a wholesaler who is family owned and he is delighted about it.Actually he is hoping for more boxes to open.He gets many many clients bringing kitchen and bath plans(with heat) that his staff find many flaws in the boxes designs.The response to their wholesale biz from the box is tremendous.Te box seems to lack in trained designers..........hmmmmmmmm and that with kitchen cabinets!

cheese

Mike T., Swampeast MO

Thanks Cheese

Was afraid I'd sound bitter.

Great example were some unique, reasonably-priced garden ornaments/bird feeders/etc. that I once found at market. The owner's son was there that year promoting them. I specifically (and at length) questioned whether they would be mass-merchandised. Was told, "absolutely not."

Bought lots of the stuff (a few 1000 $s worth--VERY high for me for one sort of item).

Within two weeks of my receipt of the mdse it showed up in Wal-Mart of all places--idential save a sticker on the package saying, "Made exclusively by _____ for Wal-Mart, Bentonville, AR." It was retailing for pennies more than I had paid wholesale and I had to pay motor freight!

Next year, owner's son was nowhere to be found of course. A saleslady in the showroom told me, "Oh yea, his daughter got a new Ferrari and a $30,000 English riding saddle out of those." Worst thing is that much of the profit likely came from little guys like me buying the stuff at the high price. Made me almost wish that his daughter totaled the Ferrari and broke her **** falling off the saddle.

Mike Riggs

I asked the showroom if they benefit from HD and they said yes and no. They get lots of people who go to HD and get so frustrated because they can't get any one to help them and when they do they don't know anything about the product. But then again, they get the customer who wants us to match their price--they came to us because HD didn't have it in stock!

We have a highly trained showroom staff and one of the best
heating departments in the area. We don't see a lot of consumers who go to HD for heating. We do see a lot who have been educated by HGTV or TLC. We do try to steer everyone to use a plumbing or heating contractor.
(This is my first time posting so go easy on me!)

todd s

Unfair trade practices

The same gov't that tells us that Microsoft is violating monopoly laws allows these large chain stores to continue destroying their competition. They also allow the consolidation of all these major oil co's and don't have a problem with it. Now the big boxes want to sell gasoline(below cost) at their stores and have their own banks, fantastic!? My friend gave me a magazine article that related Walmart's sales and it was equivlent to every person on earth spending $20 a year there! I guess they missed the $20 that I didn't spend. The only reason I ever go to a H.D. is that they're open after I'm done working. I think that if a wholesaler had late hours at least once a week they would be surprised at what would happen. I guess we have to deal with it because "value" is in the eye of the beholder and we're the minority.

Boilerpro

The real price at Wal Mart

Besides the fact that most of what you get at Wal Mart may cost 30 % less than elsewhere, but last half as long, no one has mentioned the fact that every shopper at the store subsidizes thier business. Every extra mile you have to drive to shop there costs at least 35 cents (feds figure)in automobile costs, extra roads and stoplights have to be built to accomodate the additional traffic.... higher taxes... and of course there's always the problem of U.S. dependence on foreign oil and the fact that Wal Mart no longer buys "American? (remember that in the ads before Sam Wal died?) cutting income for U. S. citizens and paying slave labor rates in poor overseas countries, dropping the standard of living there too. Wal Mart has a great formula, push all the costs on someone else and take all the profits. I believe my church denomination (Presbyterian Church U.S.A.) called for a boycott of Wal Mart years ago after Sam Wal died (a Presbyterian) and the children turned the company into the amoral monster it is today. The stock was probably dumped from the churches investment holdings (like other "sin" stocks like tobbaco) because the company preys on the weak, destroys communities and families for profit. I have hope though. The cracks are begining to show, as thier stores begin to look worn out and more people begin to wise up. History is a great instructor... all empires based on greed have always collapsed. Just my opinion.

Boilerpro

leo g_18

i got my hands

on an internal wholesaler mag. they were featuring the wal mart principle. basically, what it boils down to is that they have done extensive studies to learn of the 200 most bought products, and these are the ones that most consumers have a good idea of cost. they will not be undersold on these core items, BUT, if you look at their pricing for things like a tri-light bulb, etc. you can usually find these items cheaper elsewhere.

leo g

J.C.A.

IT'S....

In the immortal words of "click and clack" the tappett brothers , " It's the stingy man who spends the most " . IMHO , there are no truer words ! Big box is convienient but at what cost ?(still have a gift card someone gave me last Christmas , they never have what I'm looking for . After Nov. , they start taking 5.00$ a year off the "gift card" to cover their costs ' Sounds like a bargain to me !) Big business , big headaches . Chris.