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Frontline blames Aemrican manufacturing loss on WalMart

by Dave Konkel [Moderator] / November 16, 2004 12:01 PM PST
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Re: Frontline blames Aemrican manufacturing loss on WalMart
by Catgic / November 16, 2004 8:54 PM PST

Folks who been out in the Real World hustling BIZ BUCK$ know that in the manufacturing business, PRICE SELL$.

Blaming Wal-Mart or any business because someone 12 time zones away wants to perform manufacturing work for lower unit labor costs then those in the U.S., leading to lower global prices on their products, is flat out wrong.

Wal-Mart doesn?t force people to shop there?they can?t keep ?em away. Bar the door Katy?the great unwashed storm the doors in human stampedes during the Holiday Shopping Season to capture and purchase Wal-Mart Xmas specials. Why? Because PRICE SELLS. They?re giving people what they want?LOTSA STUFF AT LOW PRICES.

In Tex-Mex speak: Some called it a Problema others see it as Soluci

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Re: Frontline blames Aemrican manufacturing loss on WalMart

JP, did you see the show or read the web site? From your comment, I suspect not. The issue is not the low price -- Wal-Mart has "reverse auctions" with suppliers; the results only affect Wal-Mart's profit, not the price they charge. And these "auctions" are cited by company after company as the reason that they were FORCED to shift production abroad, or lose Wal-Mart's business.

-- Dave K, Speakeasy Moderator
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The opinions expressed above are my own,
and do not necessarily reflect those of CNET!

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Re: Frontline blames Aemrican manufacturing loss on WalMart
by C1ay / November 16, 2004 10:49 PM PST
Wal-Mart has "reverse auctions" with suppliers

I've done the same thing buying materials for IR to battle our product cost. It is used by an ever increasing number of manufacturers in many industries. Are you trying to say there is something wrong with this practice?

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Oh contraire mon ami Speakeasy!
by Catgic / November 17, 2004 9:54 AM PST
OH CONTRAIRE, DK! We Republican capitalists from the non-secessionist ?Redlands? watch the ?Devil PBS? Tube-Vee too. I saw it and read it and particularly like the PBS Frontline reports.

DK, you?ve inhabited that academic Ivory Tower too, too long.

Is Wal-Mart being in business to make money a news flash? Wal-Mart?s ?reverse auctions? help them serve their customers and their stockholders better. If the suppliers were ?loosing money? they?d stop making sales calls at Wal-Mart.

As far as company after company citing that ?auctions? are the reason that they were FORCED to shift production abroad, or lose Wal-Mart's business . No one is FORCED to do business with Wal-Mart. They doth protest just a bit too much.

They do business with Wal-Mart because they can make big sales orders and ?black ink? profit at the margins. They go abroad because they can make EVEN MORE money paying 50 cents per hour over there, versus paying $10.00 per hour over here.

For the record, I and my Bride-For-Life ?hate? Wal-Mart and Sam?s. Not for their business practices, reverse-auction?et al., but because when we go there in hopes of finding what we want at a low price, we never find anything to our liking and usually end up going home empty handed. We don?t like their return policies & procedures and general customer relations culture. Once you get past smiling Granny handing out shopping carts at the front door, it?s all down hill from there regarding CRM. Frankly, we continue to be astounded that Wal-Mart & Sam?s remain so popular with folks. We just don?t see their lure.

When we visit relatives we do the visiting-relative-bump-along and join them in their Family retail bargain hunting shopping excursions at Wal-Mart & Sam?s, but still don?t see what they're seeing there. It?s as though we are two ?lifeforms? who beamed in from an alternate retail universe. They don?t carry any of the clothing brands that my bride buys or that I buy. To us their grocery store operation is marginal and generally always seems a bit dirty with ?mystery? odors wafting through the air.

Having said that, Uncle $am Walton started a juggernaut there in Arkansas that?s grown into a world beater and their bottom-line continues rocketing to great heights of profitability. It?s 21st Century ?Arkansas horse trading? at it?s best?we just never find any ?horses? we want to buy.
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Re: On another note
by MKay / November 16, 2004 9:13 PM PST

I heard on Good Morning America this AM that Sears and Kmart are merging.

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(NT) (NT) Wal-Mart is not the cause of globalization...
by C1ay / November 16, 2004 10:08 PM PST
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One of the 'prices' is a higher standard of living.
by Kiddpeat / November 17, 2004 12:14 AM PST

WalMart is doing what every company wants to do. They've developed a competitive edge and are exploting it. They did not start out as a huge company that could dictate to suppliers. They found a better way and beat their competition. Now they are leveraging their size to become even more competitive. K Mart was also a low price competitor, but could not match WalMart's technology. The customer would be frustrated at K Mart when they would be out of desired items. Thus, customers went to WalMart because it would have the desired merchandise on their shelves.

The consumer benefits because WalMart is working to give him the best possible deal. There is nothing wrong with this.

WalMart is only one of many stores. The other stores will fail only if they aren't effective competitors. All of the stores buy products made overseas. If everyone were forced to buy US made products, WalMart would still compete on the same basis as it does today. It is not the agent driving jobs overseas.

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Re: One of -- And it takes...
by caktus / November 17, 2004 7:17 AM PST

(what with mispricing, slow laxidasy clercks and floor persons, and outdated tech) 30 min. to c/o at K-Mart but only a few min. to c/o at WalMart.

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