Dec 8, 2003

Wal-Mart (including Sam's Club)

A recent Fast Company (magazine) article about WalMart
closes with a mention of the difference between "price"
and "cost". The article is largely about how brutal WalMart
is in forcing their suppliers to deliver product at an ever
lower price. The result is that the supplier often winds
up having the product made overseas - that is if Walmart
doesn't dump the supplier and go overseas for the product
themselves.

They quote the head of a thread making company who says
of Americans:

We want clean air, clear water, good living conditions, the
best health care in the world - yet we aren't willing to pay
for anything manufactured under those conditions.


I can agree with that but for the most part we Americans, once
lead to the trough, are just unlikely to say no to anything. And,
by far, most Americans are unable to equate the slightly higher
price to a cleaner environment or anything else. They can't be
bothered to think about it. Among those who can, even fewer
act on that knowledge.

I'm amazed at how many people justify owning an SUV by
explaining that it saves them money -- being able to buy that
life-time supply of toilet paper from Sam's Club at "fantastic
savings".