Mojave Bob wrote:Rob -- an excellent point, and the answer is, "yes, it does". That is the short answer. WalMart was requiring the matching part/model numbers in the supply contract, for the specific purpose of running the ma & pa stores out of business. They would post pictures of our item and price next to theirs, and flat-out claim that they were selling the same item for less. I had more than one very pointed conversation with my suppliers, and dropped a couple of them from my line-up. That is the part that makes WalMart dishonest.
By the way, no, this isn't just a grudge because WalMart ran my store out of business. They didn't. My store thrived, because I chose do do battle with them on something other than price. I started purchasing select items at WalMart, and putting them on display next to my display item, and highlighting the differences. I made sure my sales staff could clearly articulate those differences, and I made sure they were knowledgeable about our products. I made customer service much more than just easy returns. We did just fine.
But, yes, the manufacturers are also complicit, with the caveat that they are under duress. If I am Black & Decker, and WalMart wants 100,000 drills under their terms, the right thing to do is to say no, since the terms stink. However, I also know that if I don't do it, they will go to Skil, and I can't afford to have my competitor in WalMart and not be there myself -- it becomes a market share problem. If I lose market share, my credit rating goes down, and my costs of doing business go up. So, it isn't an easy problem to answer. Most companies end up selling their souls over it.
There was a day when I could stock several drills at various price-points, and simply sell them according to what they offered -- you only want a couple of holes at low cost? I have that. You want a tool that will hold up well for the weekend warrior? I have that. You want a professional-grade tool? I have that. The customer could come in, seek advice from a knowledgeable salesperson, and leave with a tool that met their needs at the price that also met their needs. The WalMart Syndrome has caused an across-the-board drop in quality -both product and service quality - in all but the most high-end products.


As I have said above.. I chose a place of business and stay loyal to them. A place that sells quality.. and a place that has knowledge and service. I find I easily win in the long run.