Posted by gorilla on September 22, 2009 at 18:49:02 from (173.74.214.191):
In Reply to: Re: Wal mart mentality? posted by Ken Macfarlane on September 21, 2009 at 11:07:37:
I saw a piece about walmart forcing companies to move to china. Supplier go to walmart to sell their goods. (they pretty much have to since walmart had taken so much of the market) The supplier makes a deal with walmart and many of them have to ramp up production to sell to such a big outfit. They borrow money and ramp up production. The next year they go to Walmart to negotiate the next years contract. Walmart cuts the price way down from what it was the year before even though the price of raw materials has gone up. The supplier has to keep selling to walmart to stay in buisness...they have invested lots of money to increase production for walmart so they go to china where labor is super cheap. Walmart supposedly makes a MUCH larger percentage of profit from chineese goods than american so guess which ones they are going to sell. Not just walmart but a lot of the big box stores. Rubbermaid was one of the companies that walmart did this to.
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