and that in a nutshell is why so many manufacturing jobs are going offshore.
Its a classic behavioral trap, the short term positive consequences outweigh the long term negative ones. On Mon, Sep 27, 2010 at 4:17 PM, Scott Stroz <boyz...@gmail.com> wrote: > > To be honest, in this economy, I don't give a shit. > > I, like a lot of people, need to get the most out of each and every > dollar I spend. The best place for that, in my opinion, is Wal-Mart. > > When the economy turns around, and I am no longer afraid that it may > effect my job, then I can go back to supporting local businesses, > until then, I need to do what is best for my family. > > On Mon, Sep 27, 2010 at 4:10 PM, Larry C. Lyons <larrycly...@gmail.com> wrote: >> >> With Walmart however its not just the employees they like to screw >> around, its the small and medium businesses that are the suppliers for >> the company. >> >> What happens is that the contracts allow for a renegotiation every >> year. Year 1 no problem, the supplier typically gives a reasonable >> price which Walmart accepts. Year 2 Walmart comes back and tells the >> supplier to knock 5% off the price. If not Walmart will go overseas to >> a Chinese supplier who can meet that price. That's not so bad so the >> supplier usually complies. Unfortunately Walmart then does it on year >> 3 and 4. Quite rapidly the supplier finds that his margin has >> disappeared and they either have to let the Walmart contract go (which >> has its own problems) or they have to go overseas themselves to meet >> the new price. In the end the supplier and the people working for that >> supplier in the US lose out. >> >> On Mon, Sep 27, 2010 at 3:50 PM, Sisk, Kris <ks...@gckschools.com> wrote: >>> >>>>Didn't you use that example last week and didn't Jerry shoot it down? >>> They don't raise prices and they create as many new business as the >>> ones they replace. >>> >>> I must've missed it. I missed a lot of the list last week. It was a busy >>> week. I'll have to go hunt through the archives. >>> >>>>Also, WalMart, like most retail jobs pay around minimum wage and >>> employee college kids, housewives and retirees. If you are working >>> there as a career they do have management opportunities but not that >>> many. >>> >>> That's what they'd like. The truth of the matter is that an awful lot of >>> people depend on full time Wal-Mart jobs to pay the bills. I know >>> several of them and they make more than minimum wage (not that they're >>> well paid by any stretch, but it's not minimum wage). Admittedly most of >>> them are high school graduates or people who such useful majors as >>> philosophy or, but that doesn't change the fact that they work full time >>> at Wal-Mart. One in particular actually has a business degree but stays >>> at Wal-Mart because she's getting by just fine (and, I think, is scared >>> of change). The last several years Wal-Mart corporate has been bending >>> over backwards to make their lives miserable because it costs them a >>> hell of a lot less to fill the schedule with college kids, housewives, >>> and retirees who don't qualify for full time benefits. >>> >>> >> >> > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology-Michael-Dinowitz/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:328008 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
