Quote:
Originally Posted by epitome
Will it happening at the supplier level be good enough?
WalMart insisted on selling one gallon jars of Vlastic for $2.97. This left a penny profit per jar for Vlastic. When they asked for a break, WalMart threatened to yank all of their business, which contributed to 30% of their revenue.
Finally, when Vlastic had no other choice but to file bankruptcy, WalMart's response was:
"Well, we've done to pickles what we did to orange juice. We've killed it. We can back off."
Interesting article that you probably won't read because it does not support your views:
http://www.fastcompany.com/47593/wal-mart-you-dont-know |
Conveniently you left out the most important part.
Finally, Wal-Mart let Vlasic up for air. "The Wal-Mart guy's response was classic," Young recalls. "He said, 'Well, we've done to pickles what we did to orange juice. We've killed it. We can back off.' " Vlasic got to take it down to just over half a gallon of pickles, for $2.79. Not long after that, in January 2001, Vlasic filed for bankruptcy--
although the gallon jar of pickles, everyone agrees, wasn't a critical factor.