I'm broke, and I still don't shop at
Wal-mart.
Low, low, LOW prices.
Wal-mart.
Low, low, LOW prices.
Wal-mart is the king of differentiation. They claim to be the "lowest" priced store.
How can someone compete with that?
Scenario:
You are the owner of a business, and you have a product to sell.
Let’s assume this product is a bar of soap.
Your wholesale cost (the price you buy it for) is $.50
You want to price it at $1.00 to have at least a 50% profit margin.
Wal-mart sells a similar soap for $.88
A fellow wal-mart lover would say that over time those .12cents will add up. Which they will…
.12cents x 100 bars of soap=a savings of $12.00! 
Ok, now let’s compare both businesses.
Walmart | Your local store | |
Average wage of employee | $7.50 | $9.50 |
Carbon foot print of products | 6000miles | 60miles |
Differentiation | LOW prices | LOCAL PRODUCTS |
Three….that’s it? I’m not done…please be patient ;)
Average wage of employee: If you’re from California, than obviously it would be our minimum wage. But there are 49 other states with minimum wages as low as $6. Wal-Mart workers earn an estimated 12.4 percent less than retail workers as a whole. Considering the amount of success Wal-Mart has you would think they’d treat their employees a little better. I’m also a huge believer of working your way up the ladder, and when you’re compete ting with 50 other employees; your chances of being recognized are slim.
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| A carbon footprint is a measure of the impact our activities have on the environment, and in particular climate change. It relates to the amount of greenhouse gases produced in our day-to-day lives through burning fossil fuels for electricity, heating and transportation etc. |
Differentiation: Is it me, or is something being recalled from China every other day? The reason Wal-Mart can charge less for products is because China’s wages for their employees are MUCH lower than here. aka outsourcing. Plus, Wal-Mart pays their employees LOW prices wages.
If you “hate” Wal-Mart don’t shop there.
I’d much rather pay an extra .12cents than to drive all the way to Wal-Mart and buy my .88 cent soap. Let me just grab some other random cheap stuff that I walk by because it’s SOOO cheap.
It’s cheap. Cheap in price, cheap in wages, cheap in quality.
You get what you pay for.
You get what you pay for.
If none of this got to you even just a little bit please take this in mind.
Without small business we would have
no variety
no local products
no sincere smiling faces
no place to be a regular at
no locally roasted coffee
no local pastries
no local cupcakes
no hand stitched blankets
no places to advertise for your magazine
no places that will let you play the guitar in front of their store
no taquerias
no authentic Chinese food
no eco-friendly products
no artisan products
no businesses to hire your services
no place to apply to that doesn’t pay minimum
no hope for the future
no variety
no local products
no sincere smiling faces
no place to be a regular at
no locally roasted coffee
no local pastries
no local cupcakes
no hand stitched blankets
no places to advertise for your magazine
no places that will let you play the guitar in front of their store
no taquerias
no authentic Chinese food
no eco-friendly products
no artisan products
no businesses to hire your services
no place to apply to that doesn’t pay minimum
no hope for the future
You get the picture.
I’m broke and I still don’t shop at Wal-mart.
I choose not to shop at Walmart
because I don’t want others to be broke.
Follow the crowd that matters, or in this case…the crowd that cares.
Follow the crowd that matters, or in this case…the crowd that cares.
Sources I used:
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