Monday, October 26, 2009

Wal-Mart Uber Alles

Well, they're one step closer to taking over our lives.

Wal-Mart has started the "Great Book War" by offering six soon-to-be-released books on their online store for just $10, taking on Amazon. Amazon responded by lowering their price to $9.00. Quickly, Target offered the books at $8.99.

These low priced books will affect all the small book retailers in your town who are paying the same wholesale price from the distributors but can't afford to sell below their cost. But that's what Wal-Mart pretty much does. Takes out the competition.

Once touted as the "Great American Company" (remember them showing all those American workers holding hands in front of a store?), Wal-Mart has morphed into a retail monster that features products made overseas. Some manufacturers are "forced" to make their products in other countries so they can gain entrance into this monolith.

So they've done their best to destroy many American jobs and stores. Go into a Wal-Mart and check out the children's clothes' racks. Taiwan, Bolivia, Guatemala, Venezuela, Vietnam, China, Thailand, India, you name it. Block out a 40 square foot are in their store and see how many countries you can find. Each one of those countries is now producing items instead of the U.S. So put the US in the middle of your Bingo card. You can use it as a free space.

Taking on Amazon and Target moves Wal-Mart into a new area. No longer content with closing local grocery stores, toy stores, bakeries, butcher shops and hardware stores, they now want it all.

As an owner of a small company selling school supplies, it's difficult to compete with the low prices they offer. We have to place our orders with manufacturers in January and February based on our projections. We pay the full wholesale price and have to set our selling price for the year. Then Wal-Mart comes out with pricing way below their costs, just to pull people into the store to buy all those other items like underwear and socks.

Over the years we've positioned School-Pak as a company that focuses on brand name quality, convenience and customer service. We've been successful at that. You can see Wal-Mart's model any time you get in line in their store. 12 checkouts available but only 4 being used. Customers aren't their focus.

Wisconsin is one of a few states that has the Unfair Sales Act which prohibits stores from selling below their costs. That's the only protection we have here.

Most upsetting about the Wal-Mart phenomenon is that it's a privately held company. The Walton family can take a few million dollar "hits" if it puts other companies, those with stocks that fuel our economy, out of business, opening the door to monopolizing retail sales. No wonder the family has a number of billionaires!

Soon you'll see them expand to other "sacred" areas. How about "Blue Cross, Blue Wal-Mart"? Have your gallbladder removed at a reduced rate providing you use Wal-Mart surgeons. Need a hip replacement? Great price for that with a special discount on walkers and canes. They'll take care of everyone from womb to tomb.

And the bouncing, smiling yellow face may someday roll down "tithing" (from 10% to 7%) at your local C.O.G.I.W. (Church of God in Wal-Mart).

Want to keep up to date with Notes from the Gene Pool? Simply click on the little orange box at the top of your browser. You can subscribe there.

No comments:

Post a Comment