Originally posted by PaloAltoCougar
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The local radio station was doing a call-in show about vendors who get hosed by Walmart and Costco. I actually thought of Senioritis as I was listening. The topic was occasioned by Costco's current battle with CocaCola over preferential pricing given to Walmart by CocaCola. Costco wants the same wholesale pricing as Walmart and CocaCola is telling Costco: "Dude, we know you're a big seller, but you're not Walmart big." So Costco has pulled Coke products off their shelves and they say they wont sell Coke any more until Coke starts to provide Costco members with the same pricing as they do Walmart customers.
Anyway, some small T-shirt guy called in with the story of his run-in with WalMart. Before the 2002 Olympics, he provided WalMart with product which he imported from Asia. I can't remember the details, but after taking delivery, WalMart refused to pay the entire price, which was $160,000. They wanted to pay something short of that, and small vendors usually fold and accept less. This guy refused to take partial payment because he had an ace up his sleeve. He called WalMart and said he was an official vendor of the Olympics, and if WalMart didn't pay him, he would register a complaint and WalMart would get no Olympic merchandise from any of the official vendors, and they would be shut out of any Olympic merchandise for the upcoming games.
The vendor related: "So a WalMart representative shows up on my doorstep at 6:00am in the next morning. He's got a briefcase, and in the briefcase is $160,000 cash. End of dispute and WalMart gets their merchandise."
Although their business tactics leave something to be desired, I kind of admired WalMart for being so nimble even tho they're a huge conglomerate. Kind of makes you believe those stories that WalMart has a Labor Attorney with a Lear Jet idling in the driveway, ready to jet off anywhere in the world to sniff out nascent union organization movements and stomp them to death.
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