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View Diary: No thanks to Walmart (145 comments)

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  •  Well, maybe they need to raise their prices (0+ / 0-)

    Walmart is as successful as they are because they cut the cost everywhere possible.  They actively work with their vendors to outsource production to China, they pay less than a working wage to their workers, they don't provide good benefits, etc. Meanwhile, companies that try to be good corporate citizens get beat by Walmart in the marketplace because they can't even break even if they pay their workers a living wage.

    Your comment assumes that their prices would stay the same.  Raise prices a small amount and pay your people more - that's what the message to Walmart needs to be.

    Ted Cruz: The second coming of Christ, but not quite as good as Reagan (yet).

    by nuketeacher on Sun Nov 24, 2013 at 08:02:42 AM PST

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    •  If they thought they could make more money (4+ / 0-)
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      AlexDrew, nextstep, WillR, Justanothernyer

      that way, they'd do it in a heartbeat.  But the successful business model that Wal-Mart has always used has been to have the lowest prices out there -- "low, low prices" is their mantra. That's why most of their customers choose Wal-Mart over other stores.   You are suggesting that they abandon the very thing that has made them successful.  That's kind of like saying that McD's should just stop selling hamburgers and they'd be just fine.  

      Believe me, Wal-Mart spends a LOT of effort -- and money --determining how much they can charge for things without losing market share.  If they could raise prices without losing market share, they already would have done it.  

      If you raise the minimum wage for everyone, increasing costs for everyone (Wal-Mart's competitors), and therefore increasing prices for consumers everywhere, then Wal-Mart could raise its prices in a commensurate way.  It would still undercut its competitors in pricing, because that's its successful business model.  But to suggest that they, alone, could just decide to raise their prices and they'd be just fine is absurd.  

      •  This is why we need to get unions in there (1+ / 0-)
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        If they can make an extra buck by screwing their employees they will.  Then everyone else (Target, Costco etc.) are left with having to do the same in order to compete.  It's a race to the bottom.

        If they are all forced to treat their employees better we pay a little more at the store but the country is a better place for it.

        Yes, it would force them to actually compete on quality rather than price.  It would change their business model and that would be a good thing for everyone - except their stockholders (maybe).

        Ted Cruz: The second coming of Christ, but not quite as good as Reagan (yet).

        by nuketeacher on Sun Nov 24, 2013 at 10:40:59 AM PST

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        •  What Wal-Mart's economic success demonstrates (0+ / 0-)

          is that there is customer demand for the notion that low price trumps all.  You and I may think quality is more important than cheap prices, which is why we don't shop there.  And yes, Target and Costco target a customer base different from Wal-Mart's.  Target is not a "low price trumps all" model -- they try to combine reasonable prices with reasonable variety and quality.  They are successful, too, which means that there's different customer demand for the different types of stores -- just like there's customer demand for both a McD's and a small neighborhood restaurant in the same area. Costco is s different model from both Wal-Mart and Target -- membership and bulk buys, more like Sam's Club.  

          If there were no customer demand for the "low prices trump all" model, Wal-Mart would be forced to change its business model.  

          •  Quality is only one reason (0+ / 0-)

            I don't shop at Walmart, and it's not even the biggest one.  I don't shop there because (a) I don't shop much of anywhere and (b) they're fucking evil.  Their employment practices are heinous and their supply chain is even more so.  Fuck them.

            I'll believe corporations are people when one comes home from Afghanistan in a body bag.

            by mojo11 on Tue Nov 26, 2013 at 10:20:38 AM PST

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