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Article #375

Re: If they can't take the heat...

#375
From: aemeijers
Date: Sun, 24 Sep 2006 20:18
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"ChairMan" <why4@fu.com> wrote in message 
news:4516bf3f$0$7333$9a6e19ea@unlimited.newshosting.com...
> In news:dhnRg.210695$5i3.206726@bgtnsc04-news.ops.worldnet.att.net,
> aemeijers@att.net <aemeijers@att.net>spewed forth:
>> "Abe" <noone@nowhere.com> wrote in message
>> news:vsnbh2tnfm294o011cktikc2905830b1q4@4ax.com...
>>>>>>> Walmart threatens studios over movie/video sales on iTunes:
>>>>>>> <http://www.nypost.com/business/retail_iation_business_tim_arango.htm>
>>>>>> just one more reason NOT to shop at Walmart
>>>>> Agreed. That's disgusting behavior.
>>>> WalMart anticipates that they will sell fewer DVD's in the future,
>>>> so they are ordering less product.  What's disgusting about that?
>>> I couldn't care less that they anticipate selling fewer DVDs because
>>> of downloadable movie sales. That's not the point. You need to read
>>> between the lines a bit. The point is that are retaliating by sending
>>> back DVDs, and cutting future orders for DVDs way in excess of
>>> expected DVD sales shrinkage due to legal movie downloading.
>>>
>>> It's a strongarm tactic. In essence WM is saying, if you sell movies
>>> online, we'll cut your balls off at the retail level. Who the hell is
>>> WM to tell the studios how they can sell their product?
>> The Golden Rule- Them what has the gold makes the rules. This is
>> nothing new- 'exclusivity' in a particular market is a long-time
>> negotiating point in any wholesale/retail relationship. When Levi's
>> brought out their cheap line, which Wally World carries, a lot of the
>> 'name' stores threatened to stop carrying their flagship line.
>>
>> aem sends....
>
> Levis made that line FOR walmart.
> Walmart and Home Depot tell manufacters how much they will pay for their 
> product.
> Manufacters find ways to make the product cheaper for WM and HD. In other 
> words, the same product you buy at WM and HD are not the same as if you 
> bought them elsewhere.
Other retailers besides Wally World carry the Levi 'Signature'  line. (Yeah, 
Walmart was probably the 800 lb gorrilla, but Levi was the one that came hat 
in hand.) <REAL> department stores were sorely pissed at Levi, for devaluing 
the main brand. However, Levi did the math, and decided the added volume at 
Walmart more than made up for reduced sales at traditional stores. They had 
to bring out a cheap line, since their contracts with the regular stores 
dictated no sales of the same product to discounters in the same market 
area.  Which ties back to my original post about stores strong-arming 
vendors being a long tradition. Levi was just the first example that came to 
mind. Now Sears or JCPenney, not being the size of a small country like 
Walmart is, don't have near the clout with vendors that they used to, is 
all.

aem sends....
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Subject: Re: If they can't take the heat...
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