Walrmart,Target product prices

I was told that the reason that Walmart and Target charge what they do on say thier Nintendo Wii's and Sony Playstation 3's is because they they buy them in bulk so they charge below the wholesale price.
Is this true or a myth?

In most cases a company will state a retial price. This is what Walmart and Target charges. They charge the retial price that the company suggest. They have certain rules and regulations also. They are in it to make money. Even bi chains didn't get all the consoles that they wanted. Nintendo had to spread the wealth. They do get better pricing because they buy in bulk. Though the customer will rarely see all the good deals.

All retailers pay the same price on thier products. And its the wholesale price. They buy thier products from distributers. The distrbuters are authorized by the manufacturers and actually pick up the products from the plants and distribute them to the retailers.
there is no massive profit margins.

The only way you can profit well is if you sell at retail. This is where many ebay sellers go wrong. They believe that the wholesale price must be lower then what ebays average selling prices are. But most dont understand that many items sell for below wholesale.


If a retailer or a distributer has an overstock of an item they will drop the prices below thier purchasing cost to clear then out and recover some lost investment profits. But for a retailer that sells billions of items a year its not a huge loss. And is just considered business as usuall. For a small business or internet seller this can completely destroy thier company.

Places like walmart and thier falling prices scheme beats out thier competition. Its possible half the profit potential on many items but since they sell massive volume it still keeps them on top.

I agree.... At X mas I knew that Walmart wil often sell the hot toysa for cost. This really hurt certain company's like Toys'Rus. Walmart knew that the customers will very often buy more than toys. They didn' mind breaking even or in some case taking a loss on certain products. In mos cases they would make up for the lost funds with other products. Good pints Jimmy. U know the game well

This is called the 'loss Leader' it is a commonly used marketing technique that stores use. They have a popular item that they sell at a loss to drive traffic into a store and then they will sell additional items and make a profit on hopefully each customer.

Yep as we all know we cant take the wife into walmart just to buy a pound of ground beef without her roaming through the whole store finding many ways to make us miserable. And BROKE :D

Sorry i do this also. I always end up buying some other products.

Yeah and go figure now I'm working there and another job six days a week cause Walmart doesn't pay well enough. Help!!!
Do I have to apply for a business license before I can deal with these wholesalers?
If so then where do I apply for one?
Again Helpp!!!

when walmart buys ps3 or wii or anything, unlike most store they order 200,000 of a product and tell company what they will pay for it. With 3000+ stores they can set their own price, and do. Thats why many walmart goods are made cheap. the manufacturer has a order for that many of something they cut their price to minimum for them. 5% of 200,000 is more than 10% of 10,000 sold to many stores. Some even cut cost with cheaper materials to get the order. Walmart is the retail demon of all retailers. You cant compete with them on same products. :)

Don't forget that most large chain stores like walmart, charge a 'shelf fee'. Hot ticket items like ps3, especially when they are first being released, have to pay a shelf fee to the store.. For example, on large ticket items like xbox and ps3, wii, etc., walmart charges the parent company a $50,000.00 shelf fee to let them sell their items in their stores..So even if walmart has to sell the items at basic cost, they are have already made a profit from the shelf fee, by just putting them on the shelf...

All retailers pay the same price on thier products. And its the wholesale price. They buy thier products from distributers. The distrbuters are authorized by the manufacturers and actually pick up the products from the plants and distribute them to the retailers.
there is no massive profit margins.

The only way you can profit well is if you sell at retail. This is where many ebay sellers go wrong. They believe that the wholesale price must be lower then what ebays average selling prices are. But most dont understand that many items sell for below wholesale.


If a retailer or a distributer has an overstock of an item they will drop the prices below thier purchasing cost to clear then out and recover some lost investment profits. But for a retailer that sells billions of items a year its not a huge loss. And is just considered business as usuall. For a small business or internet seller this can completely destroy thier company.

Places like walmart and thier falling prices scheme beats out thier competition. Its possible half the profit potential on many items but since they sell massive volume it still keeps them on top.

Have you never seen the documentary on walmart ? Walmart forces distributers to provide a lot of items at a certain price otherwise they will not allow them to sell the products through the walmart chain.

Have you never seen the documentary on walmart ? Walmart forces distributers to provide a lot of items at a certain price otherwise they will not allow them to sell the products through the walmart chain.

Wal-mart is an exception in its own. They have the ability to sell massive amounts of products worldwide. Wal-Mart has over 4,000 Stores in the US alone. And they are making a strong push in places like china buy building stores all over china.The tactic you noted above is a tactic wal-mart uses against small vendors. Thousands of companies and people with ideas try to sign up and get contracts. Even a tiny order from walmart could mean a 20,000 to 500,000 unit order from Wal-Mart.

When a supplier has their product interview in Bentonville, Wal-mart asks the supplier how much they think their product is worth and they negotiate terms and wal-mart may suggest a better price to get the products on Wal-Mart shelves and for better selling.

Many suppliers being small businesses and the chances of massive growth through Wal-Mart Stores will agree to this price.

Larger companies do this as well. To get their products into Wal-Mart stores. And agreed as below, larger manufacturers cut quality on products and manufacturing to keep up with what Wal-Mart stores suggest on pricing.

This is why you would notice even Big brand name products have a higher tendency to be returned to a Wal-mart store. They push cheaper products so smart manufacturers will cut costs to keep up with what wal-mart wants from them. E.G lower cost parts or utilizing ways to cut manufacturing costs or costly labor force costs to build products.

Walmart has a lot of junk too. I would never buy clothes or electronics/computers from them.

I also would also never buy produce/meats from them.

The beer they sell sucks too because they buy in such volume that the way they store the beer it ends up getting skunky.

They store cold beer in warm areas back and forth which kills the taste.

I bought a twelve pack of miller high life from them and about spit it out. I went to the local store and bought another one and saw a big difference.

The Miller had cap taste on the bottle and you could see residue on the bottle from the cap.

Same with their Heineken. Terrible.

Personally, if I needed medicine, I would avoid them as well.

I only buy paper products and canned and prepackaged stuff like ketchup,mustard and Stoufers.

We have a grocer in Mass called Market Basket and in many categories Market Basket beats Walmart and their produce and meats is much much better.

I dont buy much in walmart either, especially clothing or food items.
They use low cost food ads to draw into store and get you on essentials. We tried to grocery shop in walmart when they first started selling groceries in my town. 120.00 at walmart came up to about 80.00 to 90.00 elsewhere. Their clothing is cheaply made, buttons fall off,seams come apart or just shrink 2 sizes when you wash even in cold water.

ever notice why walmart has an aisle always for clearance or customer return item . Liquidators dont even want their products lol

Ever see the lobsters they have. They are gigantic but look like they were grown in a test-tube.

i love wal~mart! lol