How To Get Your Products On The Shelves Of Wal-Mart...

Hi, Jason,

I agree that it is largely the fault of the vendor for agreeing to modify their original contracts BUT the amount of pressure put on them to do so by Wal-Mart is astronomical from what I've seen and been told.

Wal-Mart uses the old 'quantity makes up for the lower price you charge us'. Baloney! Quantity orders can only go so far toward offsetting price cutting...beyond that it's a losing proposition no matter how you slice and dice it. Some vendors will do anything, even to cutting their own thoats (metaphorically speaking) for the ability to brag about being a vendor for so and so. Ego overtakes brain sometimes. Sad.

Sandi Bowman

[MMacGillivray]

In the UK there have been many comments about farmers gaining "lucrative" contracts from supermarkets; the supermarkets can (adn do) then drop the contract or change the price when the mood suits.

The experience over here is that when you see special offers on prices, it is because the supermarket has negotiated a big discount from the supplier for a guaranteed volume of products - but that keeps their margins intact. The person whose margin is squeezed is the supplier.

Farmers here would prefer to sell produce locally to small shops. However, the British public shop in supermarkets and that takes the farmers into contract negotiations with some of the most powerful businesses in the UK.

Margaret