comedyman809;3468079[B said:
]walmart screws many a companies by contracting them and then forcing them to lower the price and cornering them into the deal,[/B] if the manufacturer does not drop the price, they drop the manufacturer and then the company is at risk of going out of business.
they did this to many companies, read the rubbermaid story.
A lot of companies though make a budget line of things for WallyWorld. Just like the Michelin Tires. And just like the CORE filters.
WallyWorld doesn't OWN the other companies, so they can't FORCE the said company to lower it's price. All they can do is threaten to not carry their product and have it pulled from the shelves, which IIRC that's what happened with Rubbermaid. What WallyWorld doesn't think about, or maybe they do, is that said company can leave their price where it's at and talk to the local businesses about carrying the product, therefore putting a little hurt on WallyWorld. The only bad thing is that "said" company will cave to WallyWorld because of the high turnover rate of items. I bet if one could look at Wally's books, places like Amazon and other similar online shopping places have put a slight decline on Wally's profits somewhat. Just like shopping for Christmas, there are a lot of people that do every single bit of it online today. If someone is running a side business of auto repair, or if they just like to stock up on items for doing their own home repairs like oil changes in multiple vehicles, it pays them to go online and buy quantities.
We have two local tire places that were scared shitless when the news came out about building the new WallyWorld right across the road from the smaller one. The local Pennzoil place was also afraid that they would go under. Today, if you drive around by Wally's racks and bays, you're lucky to see one car in there. They are usually empty. The two local tire places, well three actually as we also have a Goodyear....constantly busy. The local Pennzoil Lube joint, cars lined up to get in. Back at Wally's service area, crickets are chirping. WallyWorld was also going to build a new gas station on the side lot they had. They had permission to build it, but I think it boiled down to the fact that we already have quite a few gas stations in our little podunk town, and I don't think they could compete enough to make a profit. We have two Speedways, one on the north end of town that just expanded, and one about a mile from me by the way the crow flies. The one by me, you see a tanker in there almost daily, and there has been times that a tanker has been in there twice in one day. Plus it's also a convenience store, plus the Speedy Rewards card, draws people in 24/7. I've actually had to wait at the pumps at 4:00 am before when I was working.
So WallyWorld is for convenience, but I don't actually think they are FORCING a company to lower their prices like they may have done in the past. All of our local businesses tried to get them to stop by protesting them building the larger WallyWorld, but in actuality, I think it increased the locals business somewhat, because we have the local small town hospitality. It's made the locals change their way of DOING business, but in the longrun, it has been better for them.
Doesn't Fram endorse John Force? 
