Tuesday, December 19, 2006

Does Wal*mart suck, or are you just a media puppet?

I get so tired of reading posts by the logic challenged about how bad wal*mart is, so here is my rant.

The first thing everybody throws up is "Oh noes! What about the Mom&Pop stores?" or "The poor employees are so underpaid!"

OK, Here's how the real world works:

Mom&Pop are robbing you blind. Let's say you're buying an Acme widget for $9.99 from Mom&Pop. They probably paid $5-$6 for it from a "wholesaler," who gave the manufacturer $2-$3 for it. Wal*Mart goes to the manufacturer & says "we'll take a million at $2 each" & sells them for $2.99. Poor mom&pop...

Why should I do business with somebody like that? That can't negotiate a volume purchase with a manufacturer. That can't have a decent variety & selection.

Employees:
Let's say you're Joe Bumpkin in Podunk, Nowhere. You go to work for Mom&Pop, fresh out of high school. You're making minimum wage, have no benefits & Mom&Pop certainly aren't going to give you a class on how to get assistance from the state, because your sorry ass can't figure it out. 20 years later, you're still retarded enough to be working for Mom&Pop, now maybe you're making a couple bucks an hour over minimum wage. Then Mom&Pop pass on, and their rotten children sell the building off to a guy that opens a porno theater. You did have a retirement, didn't you? No? So sorry...

ANYBODY starting as the lowliest employee at Wal*mart, if they apply themselves, has the chance to rise to a position & wage impossible to achieve at Mom&Pop.

If you aren't cut out to climb that ladder, Wal*mart is not so bad a place for the inept, uneducated & goal-less to work, all things considered.

Manufacturers going to China and/or out of business:
The story goes that Wal*mart makes the manufactures cut the quality, or move to China, or go under.

I'm really pretty sure it's more like this - Gee Mr. Manufacturer, you're selling these widgets for $300 a gross. We want 100,000 gross. We'll pay you $250 a gross.
Manufacturer accepts price offered, then figures out where to cut things all on their own, so their owners still make the same per unit. Or they don't figure it out & go under, should of NOT accepted the offered price.

I Have heard that Wal*mart can be pretty finnicky about packaging & actually does dictate & demand things be done their way. In an operation their size, the logistics must be a nightmare. Packaging is one way to get that under control.

Some good things Wal*mart is doing:
http://www.treehugger.com/files/2006/05/its_getting_har.php
http://www.treehugger.com/files/2006/04/chicago_walmart.php
http://www.treehugger.com/files/2006/04/walmart_canada.php
http://www.treehugger.com/files/2005/10/walmart_to_use.php
http://www.treehugger.com/files/2006/05/walmart_makes_h.php
http://www.treehugger.com/files/2006/01/walmart_sets_10.php

This article, while often pointed to as why Wal*mart is evil, to me actually proves the opposite. Even proves a few of my points, If you can't do it for the offered price, don't. Business is a tough world, do it right, or get out:
http://www.fastcompany.com/magazine/77/walmart.html