I sent this to C-Span journal today to the question: Is Wal-mart good for America?
I think the question needs to be: Is the concentration of buying power, selling power in one company healthly for a country? In Texas there are 410 Wal-Mart stores,
you can blind fold yourself and start walking and you'll end up eventually in a Wal-Mart. In Abilene Texas we just raised the speed limit for freight trains to 70mph through our down town area---now Wal-Mart can get containers faster from China, which is the supplier for most of Wal-marts hard goods.
Wal-mart has brought massive savings to people by cutting out sales reps who were our neighbors, If I want to sell Wal-Mart they will ONLY buy direct, if I have a product they will only source it from the direct source. No middlemen, the Norman Rockwell America had commission salesman who sold a lot of goods to many companies. Last week I visited with a group of sales reps, not only Wal-mart but other big box stores have taken control of the publishing business, books, music-
So, its a very sad time, its a buying it at the cheapest price no matter how it effects our neighbor--not a good cultual shift in my opinion
Homer H. Hillis, Jr.
Abilene Texas
2 Wal-Mart Super centers
1 Sam's Clubs
Over 300,000' of retail
2 Comments:
Homer -
You've stated this as clearly as it could be stated. As a former sales rep (salaried, not commissioned) I've watched the phenomenon you've described take place with a certain sadness. All the old "Drummers" are gone.
On the other side of the coin, did you see the 20/20 story on Costco last week? The CEO of this multi-billion dollar corporation takes an annual salary of $300,000.00. He says, "12 times the average salary of my employees is fair." His employees are some of the best paid in the retail industry. They have comprehensive health care and benefits, and turnover is nonexistent. They still undersell Sam's. Ironically, Wall Street doesn't like Costco because they think they could make more money for their shareholders if they didn't pay employees so much!
Yes, I love Costco and will drive many miles out of my way to shop there, that was a great story on Costco, what a contrast in companies,---thanks for your comment.
I tried to sell Costco something one time--they work on no more than a 15% margin, tight but they get turns.
Have engaged employees and they love working for Costco, contast to Wal-mart.
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