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Posted to rec.crafts.metalworking
Rex B
 
Posts: n/a
Default OT Walmart and you

Tony wrote:
Competition is good, but there's more to it in Walmarts case. I think its
wrong when WalMart tells Rubbermaid "Either move production to China and
lower the "price point" of your product, or we will find someone who will."
And when 40% of Rubbermaid sales are to WM, they are beholden to WM.


I doubt that's how it played out. It was probably more like:

WM buyer: We have an offshore company bidding on your segment. They are
25% lower on the same quality, Asia-sourced. Would you like to revise
your current bid?
RQ: We have our costs cut pretty fine already. We could not match that
with U.S. production.
WM: We have a good relationship and would like to continue that, but my
boss is going to ask some tough questions if I don't give this bid
serious consideration.
RQ: Let me talk to our BOD and get back to you in a week.
---------
RQ: OK, the BOD has voted to acquire manufacturing facilities in Asia.
We will have a new bid to you as soon as we finalize the numbers.
WM: Of course, we prefer to source U.S.-made, but offshore is acceptable
if the quality is maintained.