Wal-Mart and GE are in bed together?

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A few months ago, I wanted to compare prices on some air conditioners Wal-Mart sold.
GE 8000 BTU ASW08FC GE 6000 BTU AGW06LC
Could not find those anywhere on the Internet except at Wal-Mart.
Lately I have been looking at carpet cleaners. Specifically the Hoover Agility Deep Cleaner.
Hoover F6205-900
Apparently Wal-Mart is the only store that sells that part number.
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Greetings,
Don't try to price compare something like a window AC based on model number or even manufacturer. Simply look for the cheapest unit of the number of BTU you need. Also figure in electrical usage and go with the one that has the lowest TCO (total cost of ownership). You might also find a used unit for $10 if you only look.
Hope this helps, William
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John Doe wrote:

This practice is ubiquitous among manufacturers and chains, certainly in consumer electronics. I've seen a S*ny tecnician look at a part number and say "that was bought at Se*rs". In some cases there's just one digit or letter difference in the part number.
It's to confuse comparison shoppers (and maybe indie repair shops) and squirrel of out we'll-beat-their-price guarantees.
Chip C Toronto
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Not a good example -- Manufacturers make stuff to Sears specs, just like they do for Walmart. Most consumer electronics purchased at Sears, for example, must be serviced by Sears if warranty service is needed. A lot of electronics manufacturers make special items just for Sears and Walmart.
Chip C wrote:

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John Doe wrote:

cheaper versions. If you were able to compare the components you would find features such as a lower quality motor, cheaper bearings, lighter weight moulded parts etc.
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I spoke to a friend who is the CEO of a bicycle manufacturer about his dealings with Wal-Mart. He said he's happy to sell to them, but only on condition that his company's name does not appear on the product, because of what he's forced to do in order to meet their pricing policies. Examples: Fewer spokes in the wheels, vinyl instead of leather saddles, plastic where metal should be used, unsmoothed welds, no primer, less paint, etc. You only get what you pay for. A great majority of Wal-Mart merchandise is built to a price point, rather than a quality/feature level.
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PanHandler wrote:

maybe because they PAY faster than do most of the mom-and-pop Greenpeace-bumpersticker-next-to-my-PETA-bumpersticker bicycle shops?

If you want to build your own bicycle, you're welcome to build it with any amount of gold plating that you want. If you want Walmart to stock bicycles, I guess you're gonna have to accept the product selection that works for THEM.
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snipped-for-privacy@yahoo.com ( snipped-for-privacy@yahoo.com) said...

Not necessarily -- from what I've heard from those in the industry, Wal-Mart generally signs consignment deals with suppliers. Meaning, the supplier does not get paid until the item is purchased from Wal-Mart.
I'll bet none of the mom-and-pop-Greenpeace-bumpersticker-next-to-my- PETA-bumpersticker shops get those terms. They probably get net 30 days, or maybe net 60, if they are lucky.
--
Calvin Henry-Cotnam
"Never ascribe to malice what can equally be explained by incompetence."
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no one held a gun to the bicycle-CEO's head and forced him to sign a deal with Walmart. He did it to make the money he needs to play i'm-a-trendy-bicycle-purista rolegames with his branded product. He's probably thanking his lucky stars that he gets the sales. Walmart wouldn't have any problem to bring bikes in from China, you know?
Those who are creditworty, receive credit. If the bicycle-CEO isn't giving Walmart-flavored terms to the Greenpeace-bumper-sticker moms/pops, it probably reflects his actual market experiences with them.....
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Calvin Henry-Cotnam wrote:

I know nothing about current marketing schemes, but a consignment deal with suppliers for most items sounds like a no go. It might work with some specific high volume sale items.
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Not to get racial. but the Chinese people didn't fall off the haywagon yesterday. They are up there with the Jews when it comes to business smarts. I don't think many round-eyes are gonna be able to fool a chinese sales manager.
I bet the manufacturer passes title to the goods when the bicycles are delivered to his own truck dock. Didn't you ever notice that Walmart has its own fleet of 40-footer shipping containers? If you're not in the habit of taking delivery of merchandise as "ex-works" INCOTERMS, you wouldn't bother owning shipping containers.
I think it's a 50-50 chance that Walmart will acquire a controlling share of a Taiwanese shipping company in the next decade. Why pay charter fees?
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In most all department and discount stores entire departments are "consignment". Especially are shoes, greeting cards, HBA. The store employees do not even take care of stocking them.
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Edwin Pawlowski wrote:

Also true in supermarkets. But... I think you're confusing apples and oranges. The manu... no, let's not say manufacturer, if you were Hallmark, you probably wouldn't bother trying to be a printer.... the branded-product-concept organization, PAYS RENT for the shelfspace or displaycase footprint. i guess there's some that pay a cut of the turnover to the store.
In consignment, the store doesn't even HOLD TITLE to the goods, they are just a bailee.
If you know how to use advertising to train consumers to want your brand-name on the box as well as Proctor & Gamble does, for example, you'd rather have total control of the merchandising.... you'd be happy to pay the rent. The markup on these generic chemicals is incredible, you can afford it. You tell the chemical-plant guy to dropship another million gallons of shampoo formula #1347 (you can SEE these formulations on the Net, published by the chemical houses who supply the key supplemental ingredients (eg, surfactants). You tell your plastics convertor to dropship another 2 million of the containers. there's a third contractor who fills 'em and palletizes, then directly ships to individual supermarket locations. Every niche is a niche.
I doubt that many factories in chinese provinces are accepting gizmos back across the Pacific. Last few times I looked at the ocean-freight shipping business, there was a lot of empty 40-footers piling up in the Usa after they carried goods from china.
There's distressed-goods guys that will take mom-and-pop's inventory off their hands (at a steep discount) if Pop decide that the items aren't "making the rent" due to slow sales.... My *impression* is that walmart doesn't indulge in that very often. There's not many guys who find a niche at beating Wally's cost-of-operations or guess at shopper's tastes better than he does.
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Edwin Pawlowski wrote:

Like I said, I don't know modern marketing. But if the goods are on consignment, then what does that have to do with this thread? Somebody actually manufactures stuff to Walmart's specs and then sells it in the store on consignment? Seems like all the risk would be on the manufacturer.
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"George E. Cawthon" wrote:

"consignment" is really the wrong term, George is talking about "leased departments" whereby the building (store in this case) simply rents out space to the seller(s). Its done to save the store the hassles of managing specialized departments while allowing the store to have a lot of different items available to the customers in the building. Example: The "girls" are looking at jewelry and the guy wanders off to the tools department.
Lou
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"George E. Cawthon" wrote:

Actually, according to one report I saw, at least some of the materials on sale in Wally-World (and other mass merchandisers as well) are on consignment--mostly, the perishable goods is what that report implied.
In W-M, whole departments are actually sub-contracted to other invisible operators (shoes, cameras, not sure what else)...
The point is there is a veritable web of differing marketing tactics underway--virtually all of the points made in the thread have varying levels of accuracy and the same techniques aren't universally applied to all products/departments.
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George wrote:

Not the case with any of the stuff I buy at Costco. Either the number is identical to that sold at other stores, or it is indeed a special number which reflect that because there are two or more units in a package and/or the package includes more accessories or the units have more features than normally included in the units sold elsewhere.
As for Walmart, I have no vested interest and but I wonder about some of the Walmart bashing. Recently I noticed that Walmart and Lowes (about 200 feet away) sold the same low priced BBQ. Both had it for the same price but at Lowes, the tank was extra and at Walmart it was included.
I have no idea what Walmart pays to various manufactures, but I do know that Walmart's prices are often as high or higher than I pay at some other stores.
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I find the same at BJ's also. Wal-Mart puts the emphasis on low prices. Costco, BJ's put the emphasis on quality at "wholesale" prices.
I've often heard stories from local dealers selling tools that the ones at HD and Lowes are cheaper versions, even though the model number is the same. Every time I ask exactly what the difference is, they cannot give me specifics. I don't doubt it is possible, but I've yet to have someone tell me something like a motor winding or gear set, etc is really different.
--
Ed
http://pages.cthome.net/edhome/




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Edwin Pawlowski wrote:

I do know three specific cases told to me by trusted friends who work in responsible positions at manufacturing companies.
One is the food chemist at a major canned goods manufacturer. He has to be aware of all the costs and also the selling price. He said Walmart names the price when they buy the product "we want 3 million cans of xxxxx and we will pay you $0.21/can". Since that is less than their cost he specs a special run with less of the expensive components. Another is at a paper goods manufacturer. Walmart buys in the same fashion (he said they pay about 85% of what any other customer would pay). When they run that batch they do every thing possible to minimize the amount of raw material and fluff up the paper as much as possible. Ever wonder why a 12 pack of "wallys best" weighs about 2 ounces and has 20 feet on a roll?. Another works for a lead acid battery maunfacturer. He said Walamrt also names their price and a "custom" run is done to meet the price point.
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George wrote:

If you don't like those crappy products, then buy a different brand. You can buy day old bread (often several days old) at a much cheaper price also. It is obvious to any careful consumer that some brands are better than others, and it should be obvious that some people can't afford to buy the the top brands that provide quality and consistency. Most stores, including Walmart, provide a variety of brands, so you can pick what you want.
If, however, you are saying those are major brands of canned goods that are sold under the same name in many stores, but those sold in Walmart stores are inferior, you have a problem. It is not believable.
I don't see the problem. This is a free country and a manufacturer doesn't need to sell to Walmart at a lower price and a consumer doesn't need to buy inferior goods. Sell, buy, do what you want. It's not like the government is forcing you to do anything. But of course, people who will pay $50 or $100 for a meal at a restaurant will probably be the biggest protesters. OTOH, I won't pay more than $10 for a meal and I would never dream of buying a little 2-ounce piece of meat with 3 ounces of veggies for $20 just for the chance of having a hateful waiter spit on it.
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