There is an excellent documentary made a few years ago called "The High Cost of Low Prices." I highly recommend viewing it. If only because not only do they present the case against in an unbiased way, but because Wal-Mart actually responds in the film and they present both sides of the argument. It's very balanced, but the conclusion is somewhat clear.

 

That film was very biased, it was done by a liberal documentary director. They set out to discourage people from shopping at Wal-Mart all you need to do is look at the name "The High Cot of Low Prices" to see that they were against Wal-Mart.

So your company just needed the write off? No other reason? I can tell you from personal experience that they regularly give to many small local groups without receiving any publicity at all. Ones that I have worked with who benefited include boy scouts, girl scouts, school booster clubs, school bands and a boys group.

 

I won't go there! Let's just say we are more charitable and lower profile about it.

I don't think the mom and pop's gouge as much as Wal-Mart negotiates with the manufacturer (or simply finds a cheaper look alike product from China when available) because of the number of stores they operate. I would think Wal-Mart actually has a higher gross margin than the mom and pop (which is why the Walton's are on Forbes and mom and pops are not).

 

Wal-Mart's margin runs around 26%. It is higher on some things like apparel and much, much lower on cosumables, groceries and large items like riding mowers and LCD tv's.

You know if all of the people that bemoan the harm that WalMart does to mom and pops actually shopped at mom and pops they wouldn't be hurting.

:thumb: you are dead on.

 

All "Mom and Pops" need to do to compete is the following...

 

-Run a CLEAN operation

-Be INSTOCK on the items your customers count on you having

-Make CONVIENENCE the essence of your business, ease of parking and checking out.

-Do not sell OUT OF DATE merchandise (too many small stores do this)

-Ensure your parking area is SAFE, either with better lighting or security patrols.

-Be COMPETITIVE on pricing, not cheaper just close to what Wal-Mart and other Big Boxes are at.

 

Great example we have two small markets within half a mile of my house. I go to one of them exclusively for odds and ends that I may need. I choose one over the other because of the above listed reasons. One sells milk 50 cents higher than Wal-Mart and Kroger the other sells it $1.00 higher. One sells anything it can salvage (expiration dates be danged), while the other does not. Last but not least one sells poster board while the other does not, (how many times have you needed poster board at the last minute for your kids school projects)