how was Wal-Mart been able to achieve such low pricing?

Answer 1

Bulk purchasing, exclusivity agreements, and low wages.

Answer 2

(a) they buy in bulk, and sell a ton (=high purchasing power)
(b) volume contracts, volume rebates, their purchasers negotiate like hell and gouge their suppliers
(c) they dictate the products Walmart wants to sell (this is where Diet Coke with Splenda came from btw. A product created by Coke to appease Walmart)
(e) low distribution costs. Manufacturers (e.g. coke/pepsi) put their factories next to Walmart warehouses. Walmart also avoids regular distribution channels by forcing manufacturers to ship direct to their warehouses (doesn't happen with other companies)

Answer 3

its easy, they buy in huge bulk, then sell it for a small profit, you do this alot and you can make money.


and to all you anti walmart people, ever notice how target has almost all the same things, why aren't you against them too?

Answer 4

Sweatshops.

Answer 5

they tell Kellogg's (or what ever company it is) we will buy x amount from you if you charge us x price. If they don't then they don't buy from them.

Then they take x price and mark it up 1% up to 75+%

Answer 6

Market share.

Answer 7

So every one of all sizes and shapes can fit and be able to pay the clothes so they dont loose busnisus ( like abercrombie . . . )


Hope I Helped!

(o: Gina :o)

Answer 8

Selling lots of cheap stuff, they get more money than selling only a little expensive stuff.

Answer 9

they dont. they mark the product up, then mark it down so that it appears that they are selling it for a cheaper price.

smart move cause its working.

Answer 10

dictate prices to suppliers