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Wal-Mart: Our shoppers are 'running out of money'

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posted on Apr, 29 2011 @ 05:51 PM

Originally posted by SLAYER69
Their profits are still going through the roof. Just not from American Consumers. I bet most of the Items on the shelves over in their Chinese retail locations are actually MADE IN CHINA

That's what happens when your leaders destroy your own economy and industry, helping move jobs overseas to save money for more executive profits and all the rest.

The one good thing that will come of it, is that China itself is also tired of the policies of Western leaders and is putting increasing pressure on Washington to change its policies. This is a good thing. Let it happen. It's unstoppable at this point anyway. The Rockefellers have stomped themselves out of power by their own stupidity.

China is all growth while the US is all decline. Again, no one's fault but our own leaders'.
edit on 29-4-2011 by bsbray11 because: (no reason given)

posted on Apr, 30 2011 @ 12:28 AM
reply to post by randomname

this is serious, how is wal-mart supposed to pay it's chinese suppliers while selling it's products with a 90% mark up on the dollar.

I'm quite curious where you get such a figure from.

There are two major factors in the cost of a product. First is the cost necessary to purchase merchandise. For example - a glass of soda from the fountain only costs about $0.15 - less if you purchase the syrup and CO2 in greater bulk than our restaurant.

The next is the cost to shelve and service the merchandise and/or customer. This one is more tricky to work down to a per-unit price. If your restaurant is only selling soda, for example, and you have three employees with a total pay-roll of $1500 per week, your utilities -average- $100/week, and your rent/loan on the property is $200/week, you have a total of $1800 that must be met in weekly revenue aside from the cost of your products.

Now, we rapidly start to enter nonlinear math. If you don't know what that's all about - it's pretty simple: the price you sell merchandise at and the volume you sell both determine your revenue for the given time span. Other factors influence this (you can't possibly sell more glasses of soda in a day than you can physically dispense in that time frame) - but if I sell each glass of soda for $500, then I only need to sell four glasses of soda to cover my overhead. However, if I sell them for $0.30 - I need to be able to push 12,000 glasses of soda per week to meet my overhead.

While, technically, a 100% mark-up - I'm not really making any kind of a profit at that rate.

Further - to turn that kind of volume, I will probably have to bring on additional machines, employees, and likely have longer opening hours - all of which will have an impact on my overhead.

Now - business in the service industry varies in the extremes. We've had some -bad- week-days where there have only been a few (less than ten) tables the entire night. We've had week-days where the staff got gang-raped and former employees drafted back in to combat the hordes of customers.

This makes it hard to figure a per-unit or a per-hour cost. However, you can refine the data resolution to hourly quotes - how many sodas do you need to sell in a given hour to meet the overhead costs for that hour? What hours routinely meet their quotes and what do not? Selling sodas in the morning is probably not as good of an idea as selling them at lunch and/or dinner time.

And, just for the sake of things - let's make this a -real- restaurant and sell something more than sodas and apply all of the same craziness and compound it on top of itself. You'll have days when you are running to the local supermarket to buy shrimp because you're running out of stock (or because the manager is dirka-dir and didn't order any). You'll have days when all you are serving is steaks and you'll have entire weeks where it's a Truck-Stop-Tuesday marathon. You'll have times you can't keep deserts in stock and other times when you couldn't give them away.

This amount of uncertainty in all of the retail industries makes prices hard to figure. Manufacturing is mostly done on the back-end; an order comes in for a thousand parts and you know how much material that will take, how many man-hours, how many machine cycles, the average amount of down-time for any given operation, etc - you can plan everything like clock-work.

When you are completely dependent upon someone walking in and making a purchase... it's difficult to figure what is a 'fair' mark-up, and what isn't. 30%? 50%? 150%? 250%? - It all depends upon how much volume you can drive at any set price.

As has been said before - the average net profit wal-mart goes away with is 3%. Far less than your average beverage manufacturers (30%) and pharmaceutical companies (10%). That falls within the average of all Fortune 500 companies - usually ranging between 3 and 5%.

If they are selling things at a 90% mark-up - they aren't getting unreasonably rich by doing so.

posted on Apr, 30 2011 @ 12:45 AM
Of course even Wal Mart is loosing money. Did they not cause their own fate? Same with many other corporations...
All people can afford now is thrift stores-they have been so packed locally for a while now-, and dollar stores, if not offered free donations from food/clothes banks.
edit on 30-4-2011 by dreamingawake because: (no reason given)

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