[Discuss] Discuss - Software Engineering union

[dan at geer.org]

> That's not Walmart's only problem.  Walmart has been known for questionable
> purchasing practices.  Let's say you make product X and you're the only one
> who makes that product.  You sell around 100,000 units per month for $10
> each throughout the US from a few small retail locations, to which you sell
> it to those retail stores for around $7 each.  Walmart finds out about it
> and comes to you and says that it will commit to 1,000,000 units/month but
> it wants to but it for $6 each.  This goes on for a few months, which makes
> you happy because you've been able to grow you production and hire more
> people.  Now Walmart comes back to you and says since it's selling so many
> it will commit to 2,000,000/month but it wants it for $5/month.  You say
> yes because you don't want to lose your existing orders and at $5 you can
> still make a bit of profit. But after this, this is when Walmart starts to
> demand that you only sell through them and continues pushing your price
> down further and further to the point some manufacturers have had to go out
> of business.  All because American's want to save a few cents and Walmart
> wants to get more customers and earn a few more cents.

"Monopsony" -- a single buyer (as monopoloy is a single seller)

An executive at Colgate told me that they are down to 15 customers
and the future is bleak.

--dan