WS>>The Wal-Mart You Don't Know

Jim jnantz2 at 216-19-216-16.GETNET.NET
Wed Mar 3 23:29:47 MST 2004


I've noticed some inaccuracies with that article.

1.      That gallon jar of pickles is not a year's supply.  One of those will
last me maybe two weeks.  Then I have a big jar to put something else in.

2.      I can carry one jar to my cart with only one hand.

The writer acts like the Vlassic pickle company is suffering because
Wal-Mart is selling the pickles for the price they are.  Bullship!  Vlassic
is making a helluva lot of dough on those pickles.  They make more money on
the second million jars of pickles than they do on the first million.  Once
they've sold enough pickles to pay their operating expenses, and taxes, the
rest is profit.  If Vlassic was loosing money on those pickles that
Wal-Mart sells for $2.97, Vlassic wouldn't be selling them to
Wal-Mart.  They would sell them to some other retailer.  This joker says
Wal-Mart did the customers a favor, but asks what did Wal-Mart do for
Vlassic?  Answer: Wal-Mart helped raise Vlassic's profits.

Also where does this guy get off condemning the gallon jar of pickles as
excess?  If Vlassic wants to distribute their pickles in gallon jars,
Wal-Mart wants to sell them and I want to buy them, it's none of Charles's
business.  I've read in several places that Americans enjoy some of the
cheapest food in the world in terms of how long they have to work to earn
the money to buy it.

He goes on to make it appear that Wal-Mart gets off on threatening to stop
doing business with companies that it doesn't like.  This sounds like more
Bullship.  If Wal-Mart stops selling Vlassic pickles or anything else the
customers want, customers will go to the competition.

About the jobs going overseas, that's the government's fault.  Today on
Quinn's show, he gave an example of how protectionism harms the American
economy and costs jobs.  Years ago the government imposed import taxes on
sugar to protect domestic sugar producers from competition.  This is
hurting domestic candy producers.  Life savers are now being made in
Canada.  The labor costs there are the same or higher than they are here,
but the sugar is so much cheaper that life savers can be made cheaper in
Canada than here.  Other candy producers are going to Mexico.

I will shop for the best deal I can get.  Wal-Mart gives me that best deal
compared to the other grocery store chains in Phoenix.  What happens if
Wal-Mart starts charging higher prices once they think they've cornered the
market?  Over a hundred years ago Sears Roebuck came in to being.  They
became one of the biggest retailers in America if not the biggest.  Sears
used to be what would today be called a discount retailer.  They used to
say in their catalogs that you can get stuff from them for the same price
that your local merchant pays for it.  When competitors came along, Sears
adapted.  They started making their catalogs a little smaller than their
competitors did.  This ensured that people who had multiple catalogs would
put the Sears catalog on top since people always stack the smallest book on
top and the bigger ones on the bottom.  In more recent times Sears ceased
to be as competitive as they had once been.  Now Wal-Mart has come along
and taken the 800 pound gorilla title.  If Wal-Mart ceases to be
competitive, someone will come along and take the 800 pound gorilla title
away from them.



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