Big Company Rant

[padronanniversary]

Being in sales, you get the whole wood work of people. But more and more companies are adopting a wal-mart mentality of treating suppliers like crap.

I got this one company that has disillusion of grandeur saying they will buy thousands of our parts. Well, years ago, we had to scrap thousands and thousands of dollars of these parts that they never took.

Anyhow, its amazing how they all of a sudden need our parts, and still expect to sell at prices from 5 years ago at prices quoted at volumes in the thousands, with their terms and conditions.


I just find it amazing that people are out there that feel just because they work for a large company, they can get what ever they want, and get really upset when they hear otherwise.

My rant for the day, off my soap box now.

 

[jcfd2201]

Re: Big Company Rant

I just had this conversation the other day with a friend about Wally World setting their purchase prices. What do you think they would do if the tables were turned and the public told them what we will pay for an item? I wish we could turn the tables on them. For some businesses it may be a good deal if you are going to make it up on the volume increase but you really have to way it out. In your case....I think I would tell them the price is now this $ and it includes the earlier loss, if they don't like it tell them to go pound sand!

 

[crumpmd]

Re: Big Company Rant

You would be a fool to sell to Wal-Mart. A local nursery almost went bankrupt after getting a contract with wallyworld. They canceled and the nursery had no recourse and was stuck with huge expense and no market.

 

[SledDog]

Re: Big Company Rant

There's a great documentary about this called "the man who tld walmart no", I think. I think it was Snapper who told Wal-Mart to get bent and the story around it. Good stuff.

 

[sierra2]

Re: Big Company Rant

It's more than just WM. My wife used to work for a law firm, primarily in workman's comp. law. I was amazed to hear stories of how the insurance companies would tell the law firm how much they were going to pay for billable services. That would never fly for those of us in the real world.

 

[cavscout1983]

Re: Big Company Rant

You should check out the documentary: "Wal-mart, the high cost of low prices".

 

[Michael]

Re: Big Company Rant

The ages old adage is still true today.

"There are customers you just cannot afford"

 

[HOGGHEAD]

Re: Big Company Rant

Walmart made a mess out of the hunting and fishing industry in the mid to late 80's. Small tackle shops still have not recovered. If it wasn't for live bait they would be gone. They also hurt the ma and pa gun shops. However if i was in the sporting goods retail business I would move next door to WalMart. They can easily be beat, you just have to be smart!!

Lots of mfrs. in the sporting goods business made a deal with the devil, and it came back to bite a bunch of them, but it also worked great for some.

I remember when WalMart said they would not deal with the sales rep. groups. They would only deal with the mfrs. direct. They refused to pay the sales rep. group commissions. Some folded, some didn't. Tom.

 

[spaniel]

Re: Big Company Rant

There is a long list of companies who went bankrupt from not being financially savvy about their dealings with WalMart, Huffy bikes and Vlasic pickles among them IIRC. Lesson is, you have to figure your net profit and not get tied up in the volume.