Walmart and their low prices?
How is it that walmart can charge so much cheaper than other stores. I'm Union and not supposed to shop Walmart but i don't understand how they can sell the same soda for 2$dollars less. Or the same bag of chips for 1.50$ less
I don't get it someone fill in the blanks
Volume buying power. They go to a supplier and negotiate a price for an item to go in ALL their stores. The supplier can give them a better price (actually has to give them a better price to be accepted into the supply chain) for the large volume.
There was a good article on PBS stations (I think it was PBS) that showed how Wal-Mart works. Did you know that they have the biggest computer system in the world second only to the US military? Supplies are given access to "instant demographics" meaning they can watch in almost real time how many items of their product are selling in Peoria at a given moment. Unbelievable!
Union or not, you would be foolish to buy the exact same item for more money in another store, wouldn't you? Sure you would.
Source(s):4 years ago
i don't know etherby newt - 4 years ago
the bigger bulk items you buy the cheaper you get them. so then they can sell for cheaper. and then they also transport there own goods and ever-thing.by errouneousknight - 4 years ago
Because they are such a huge company and and they sell so many products. Also I don't think they pay workers that much. Remember: cost of goods is not that much. If you can sell a lot of them, you can charge cheaper and still make a lot of money.by Re - 4 years ago
Prices at walmart are based largely on marketability. It depends on where the store is located, how much business it does in a day, and so on. Also, the price depends on inventory. Prices will usually go down if there is a large inventory of a certain item; for example, if the produce department has an average inventory for strawberries, then the strawberries will sell at the normal price. (Which, for my store right now is $1.77 for a 1 Lb package). If there is a huge inventory of strawberries, that price is going to go down. Furthermore, alot of the products Walmart offers are vendor stocked, so the price depends as much on the vendor as it does Walmart. Some items that are vendor stocked include name brand sodas, potato chips, certain frozen pizzas, milk, and so on and so forth. And walmart is a large store that can offer a dozen different items or different brands so it often has the advantage over the competition because they can afford to sell it for cheaper, knowing that whatever item it is, will sell. I hope I helped you a little, I could be wrong, but Im an associate and have been for a while and this is what aI've learned. :)by neann - 4 years ago
Walmart is the largest company in the world, selling billions of dollars of goods per day. They sell anything that is of value, be it toothpaste, televisions, electronics, clothes, whatever. And when they purchase these items, their vendors know they in turn will sell more of their goods since Walmart has such enormous exposure.
Example: Walmart is Proctor & Gamble's biggest outlet for their many products. What if Walmart suddenly decided not to carry their products such as Tide, Crest, Pampers, etc.? Then, P&G would lose much revenue, thus, their prices have to be extremely competetive to sell to Walmart, who in turn can sell it for less.
Other than volume, Wal-Mart has most if not all of the name brands made to their exact specifications. Take a Champion sweatshirt from the sporting goods store and compare it to the supposed same sweatshirt at Wal-Mart. You will find that it is not the same fabric weight or quality. Just because it has a brand name on the front doesn't mean they are all created equal. Most people are not aware of this fact. Which is why the Wal-Mart version of the products tend to wear out faster.by Dr. Wu - 4 years ago
Sam Walton started this company by buying in bulk (which costs less) and selling lower still turning a profit because he bought in bulk. The other factor is being competitive. Not all Wal-marts have the same prices believe it or not - A majority have a base price which would be for all stores company wide, those items are usually featured in the ads that are mailed or put in newspapers. However, lets pretend that store A is located in a fairly populated city with many businesses near by (Lowes, Home Depot, whatever grocery chain, clothing stores) store A will go to these competitors and make sure they are beating their prices which will obviously create the store to sell more than the competitor which reduces losses on these particular items since the inventory be lower. Now say store B is located in a more rural area where there isn't much around to compete with. That stores prices will be slightly higher than store A just because there's no competition. Now, lets also say that both stores are only 10 miles apart, the factors will still be the same Store A will be cheaper than B.
It all has to do with buying in bulk and the buying power the company has. The largest retailer/employer in the world. They don't pay crappy wages, btw - they have gotten competitive in that area too! It's a little known secret and I have to laugh everytime I hear how horribly we're paid and how horrible are benefits, etc are. lol. Also, we're not union therefore, we don't give anyone our money 'to protect us' and we are allowed to shop any darned where we please!
P.S. union people shop in our store all the time :) why? because they've spent their hard earned money on union dues and can't afford to not shop smart!
the real question is why theres a midget working at every walmart in the country GO ON LOOK AT A WALMART I GUARUNTEE U SEE AT LEAST ONE LOL
Source(s)by King Donut! - 4 years ago