The Mudcat Café TM
Thread #80107   Message #1460505
Posted By: Bev and Jerry
13-Apr-05 - 07:59 PM
Thread Name: BS: How many Mudcatters shop at Wal Mart?
Subject: RE: BS: How many Mudcatters shop at Wal Mart?
PoppaGator:

Thanks for sharing with us where you buy your underwear. We were wondering (just kidding).

The reason Walmart gets singled out so much is their procurement policy. They are the biggest corporation in this galaxy and they carry nearly everything. If you manufacture something that sells at retail you must deal with them. They buy a million of your widgets at some price and sell them at a profit. When it's time to re-order, they tell you that you now must sell it to them for 20% less than last time. You say that is impossible and they tell you go come back when you've figured out how to do it.

So, if you were making your widgets in the U.S., you change to off shore manufacturing to reduce your cost. If you were already manufacturing off shore, you search for an even cheaper sweat shop.

Because their so big, they drive the entire industry to cheaper and cheaper manufacturing.

Bev and Jerry