The retailer has a clear policy for suppliers: On basic products that don’t change, the price Wal-Mart will pay, and will charge shoppers, must drop year after year. But what almost no one outside the world of Wal-Mart and its 21,000 suppliers knows is the high cost of those low prices
- Wal-Mart has clear policy for suppliers: Basic products must lower in price year after year.
- Wal-Mart uses its position and power to squeeze profit-killing concessions from vendors. Ex: bras, bicycles, blue jeans must lower in price.