How are things sold so cheaply at walmart?

Question

I know they buy goods from china.. what else did they do?

Answer 1

Minimize any overhead.

Pay staff minimum wage.
Buy items in bulk from suppliers to get best price.
Monitor prices from competition to ensure they are always lower.

You might also notice that many items sold at WalMart are not identical to sold elsewhere. Toys often are unique, sometimes less smaller parts. When you compare pricing between stores, ensure the items are identical. Often WalMart products will be slightly smaller, not have the samel compliment of accessories, and so on.

I think most stores are going to the far east to lower costs. You get what you pay for in many cases. There is a difference between cheap and inexpensive.

I've heard other horror stories about very unfair purchasing practices which would allow them to severely undercut their competitors.

Answer 2

They buy in large quantities and they price from the bottom up rather from suggested retail price down as most retailers do.

Answer 3

they buy in huge bulk quantities