On Our own said:
Actually wifezilla it is not a wash.
Wal-Mart has put so many really large manufacturers out of business it is not even close to funny. They start a contract for the manufacturer to produce on a massive scale - the firm invests big on capital outlay to ramp up to meet Wal-Mart style demands. Then Wal-Mart demands that they shave off prices. They will push them, now in debt, to move their manufacturing overseas to lower costs. If they refuse Wal_Mart pulls the contract and the firm, with no outlet for their goods, sinks. Frequently, a Wal-Mart subsidiary then buys the remains and profits.
It is written down as standard business practice. They train people to do this.
Very well said!!!
Considering a section of conversation with wally world employee a topic of to put forward and of loss is when I stood up and walked out.
Considering the stressful demands of production as a manufacturer, with my items dealing with Artisan Metal Shop, I have found ways to increase productions to meet wallys demands. The fact the I would have to put forward nearly a quarter million dollars, bothered me. It wouldn't bother me if I had support or some kind of purchases to back the number, even if by half.
When the conversation of goods being lost or stolen, and or seasonal items being returned and they demanded to be given credit within 10 business days, I knew I would have to stick my neck out further than I was willing to. As far as lost or stolen items, they would only pay for items that were scanned at point of payment. If it wasn't scanned, they won't pay for it. So in other words if I sent them 10,000 items, and only 8,500 were paid for, the 1,500 items missing that I paid to make, sent, and they signed for at point of delivery. I would have to take on those losses directly, which to the benefit of wally, it just makes good business sense, but not if your the supplier.
Their point of security, they spending millions in their own stores is their point when I asked why suppliers had to eat the cost of lost/stolen goods.
So I clearly understood that if I wanted to play ball with wally, it would be only under their rules and conditions. Under those terms, I found it to risky to due business with them, considering my own goals of where I want/taking my company too.
I also won't play ball with lowes either, their rules, though slightly different, aren't in the best interest of my company.
However, setting up whole sale accounts nation wide has been wonderful. I have several farm supply stores that carry my stuff on a regular bases. The largest supplier out of those is a chain in NC that have 14 stores right now and growing. I have over 20 other whole sale accounts with private owners of other stores. With on-line sales going up every month, I am pleased with my gut feeling of not doing business with them.
I am in business to make a profit, and though it has been a hard road sometimes, I haven't made a loss yet. I have understood that I have to keep investing back into my company in order to keep changing and adding new product lines. I would rather invest in my own company than to except losses because something was lost or didn't go to point of payment.