"Keep spending and sending your dollars to China. They are all but certain to come back in another form."
I understand all the free market talk, etc. But if you have ever SOLD to Wal-Mart (actually sat across the table from them in Bentonville) you'll never really understand what they are and what they represent.
Some of our largest manufacturing companies in the USA have up to 70% of their output going directly to Wal-Mart. (That's a good thing). But what you can't see is the (wet-behind-the-ears) purchasing agent that sits down with you in Bentonville on a $40 Million dollar account and simply ask you, "what is your discount this year?" At first, when Sam was running it, this was a good thing. It caused all of us to learn about supply chain management and really sharpen our manufacturing processes cutting out the waste. For a few "purchasing rounds" (bid periods) one can get away with discounts. The discounts CAUSE you to become more efficient so you can maintain your profitability (a good thing!). But once you've trimmed the fat and made your company sleek economically and you return to Wal-Mart, the same question is asked ("Your Discount?"). At this point you have 60% of your business in danger of being lost. Your company would "fold" if you lost it ... so you give a little more. But like a drug, Wal-Mart continues to ask for more ... and when you can no longer give ... they go to China anyway. You lose the business, your company folds and they "go forward."
I DO understand the free market ... but if you've ever been across the table from a "child purchasing agent" in Bentonville, you'll never forget it. Value is never discussed, only price. You come away from your "appointment" realizing you have either been raped or mugged or both. You will never WIN... it is only set up so they win. Wal-Mart is not "doing" anything (manufacturing, creating, etc), they are simply robbing from the profitability of American firms, moving them toward bankruptcy, then moving on to China for their goods. And the difference in the Chinese goods is that China is robbing their own people to please Wal-Mart.
Before the free market folks jump me ... first, there is no free market with China ... not until they let their currency float. It is economically dangerous and has EVERYTHING to do with the "free market" ... Wal-Mart, by increasing their huge percentage of purchased goods from China is supporting a rogue economy. Don't use "emotion" for an answer, LOOK AT THE NUMBERS!!! Is Wal-Mart buying from Europe? The bulk of the purchases are coming from China and the bulk of our deficit is going to China.
What was a good idea when Sam ran it has turned into something dangerous. And again, until you've been run out of business by the Wal-Mart purchasing child and the Chinese, you haven't a clue what you are talking about. I've been there. Thank you Wal-Mart. I really don't mind playing the game, in fact I love it. I'm a Capitalist ... but nobody should be forced to play in a crooked game.
I want a free market economy, but only when the playing field is leveled. The Chinese are not playing on a level field, and Wal-Mart doesn't care. What frightens me more is that when a friend shops at Wal-Mart ... he or she is handing the economic stilleto to the Chinese who will, sooner or later, put it into all our red white and blue hearts.
If Wal-Mart were not allowed to deal with China because China is running an illegal game ... what would happen to Wal-Mart? Now that's another thread isn't it?
I know a few hundred people who won't be having a nice Christmas this year because of the great and benevolent Wal-Mart. I'm one of them ... along with the many people I used to employ. Thank you Wal-Mart ... thank you China ... and thank you Free Marketeers. I know this is all for a good cause!
... and a Merry Christmas to all.
"Wal-Mart is not "doing" anything (manufacturing, creating, etc), they are simply robbing from the profitability of American firms..."
Nonsense, Walmart is doing a LOT. After they negotiate (for me and every other Walmart shopper), they BUY, tranship, stock and sell to us. At a profit. No one HAS to buy or sell to them. People choose to. Horrors, the FREE market - FREE people making FREE decisions.
Holy crap! You have obviously never been in the PC industry! Ha! You trot on down to Austin as an American (or Chinese) semiconductor vendor and see how THEY treat you! Ha ha!
Or go up to Intel where they made NIC cards. I had a buyer ragail a story she thought was funny. Intel put the price squeeze so hard on three competing suppliers that all three just dropped the business and Intel went line down and was unable to continue to build that product! SHE GOT A FRIGGIN AWARD!
Don't cry to me about selling to "wet behind the ears" WalMart buyers.
Why are you not bitchin about Dell, Intel, Microsoft?
according to post 118, walmart buys 18 billion from china or about 12% of all chinese imports in the US but walmart has annual sales of 400 billion. So 18 billion is about 5% of walmart sales.
"I know a few hundred people who won't be having a nice Christmas this year because of the great and benevolent Wal-Mart. I'm one of them ... along with the many people I used to employ."
Here are the mistakes you've made and you've obviously paid for them.
1. You failed to establish a strong brand which your firm owned, lock, stock and barrel, complete with the necessary legal protections.
2. You viewed your dealings with Sam's as adversarial; you should have established a team concept with them so that the goal was how can "we" jointly benefit.
The company from which I retired counts Sams as its most important customer. The working relationship is quite good although they do admittedly try to get in our pockets.