mom
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♥ ♥ quantity ♥ ♥ |
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shadebug
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1) buy in bulk
2) squeeze the supplier
1)if you have enough quantity going out you can afford to have a tiny profit margin
2) if you don't sell to walmart you lose a massive source of income, as such walmart has the power to negotiate lower prices |
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Tito
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Buying stuff in quantities of a million, to sell, works out cheaper over the course than buying said stuff in hundreds. |
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Greed...Is Good
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The amount of items bought. Buying in bulk (greater quantity) provides deep discounts from the manufacturer. Can you imagine what one contract from Walmart would do for you individual business? |
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FallOutBoy
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My brother works there actually both of them do at there prices they managed to bring in a couple million dollars FROM 1 STORE IN 1 DAY ITS TRUE |
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ron
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Walmart doesnt pay thier employees much in wages, no insurance, and less than 40 hrs. Walmart is leading the industry in number of employees on welfare. |
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Little anionyx
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Wal Mart is the largest corporation in the world. I have read articles where suppliers discuss the following event. A room full of suppliers wait to talk to a Wal Mart buyer. The Wal Mart buyer TELLS the supplier what Wal Mart wil pay, even though it is lower than the company may like if they do not accept the price the buyer will step out of his office and announce who can give him a lower price say on a fan.5 companies stand up. It is cutthroat, plus Wal Mart buys 80% of its items in China. Where labor and products are super cheap right now. In this current economy many companies cannot stay in business if WalMart were not buying the bulk of what they made |
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iampamtoo
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Well, one thing they do sometimes is when the Wal-Mart truck drivers show up at the warehouses to pick up the merchandise they tell the warehouse that they will not take it unless they can get it for a lower price. The warehouses don't have much choice since they are sitting on the stockpile that Wal-Mart wanted in the first place. True story...If you know any truck drivers, ask them about it... |
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lil momma
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stores get different disounts as a retailer, the more they sell they bigger the allowance. |
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Gary S
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I would say 2 major factors are at play:
1. ANALYTICS
They have analytics which are among the best anywhere, so they can get exact demand forecasts, knowing exactly how much of product X they can sell for price Y. Once they know that, they can determine the highest price they are willing to buy the thing at.
2. MARKET POWER
They are the 800-lb gorilla in the consumer marketplace and so can pressure vendors into selling to them at the lowest possible price (it helps that they have superior data on vendors as well). Some of these vendors actually sell at a loss to wal-mart periodically just to keep the account and shelf space.
Those are the principal components of their pricing power. Beyond that, there are many other less influential factors.
Gary S. |
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queendebadow
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Most everything is made overseas. and even if people know where everythings made, they won't care. they just want to save money. They live in expensive homes and drive expensive cars. But they want to buy cheap underwear. |
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unicornfarie1
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They sell a lot of product. If you buy in bulk you get it cheaper and that's what they do. So they can sell it cheaper. |
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Kami H
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they sell more |
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plehaq
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They buy in huge quantities and since everyone go to wall-mart they can make their products cheaper since they know people will come there. They also have stores everywhere so even if they only make $1 profit on an item they still make a lot of money from all the people buying it. |
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wenhan333
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They probably don't like to make profits |
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