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Amazon and Walmart Are In An All-Out Price War That Is Terrifying Big Brands (recode.net)
gollum123 quotes a report from Recode: Last month, Walmart gathered some of America's biggest household brands near its Arkansas headquarters for a tough talk. For years, Walmart had dominated the retail landscape on the back of its "Everyday Low Price" guarantee. Walmart wants to have the lowest price on 80 percent of its sales, according to a presentation the company made at the summit, which Recode reviewed. To accomplish that, the brands that sell their goods through Walmart would have to cut their wholesale prices or make other cost adjustments to shave at least 15 percent off. In some cases, vendors say they would lose money on each sale if they met Walmart's demands. Brands that agree to play ball with Walmart could expect better distribution and more strategic help from the giant retailer. And to those that didn't? Walmart said it would limit their distribution and create its own branded products to directly challenge its own suppliers. But this time around, Walmart's renewed focus on its "Everyday Low Price" promise coincides with Amazon's increased aggressiveness in its own pricing of the packaged goods that are found on supermarket shelves and are core to Walmart's success, industry executives and consultants say. The result in recent months has been a high-stakes race to the bottom between Walmart and Amazon that seems great for shoppers, but has consumer packaged goods brands feeling the pressure.
But much more of Amazon (avg maybe $100/month), I hope Wal-Mart at least holds its own. Because Amazon is destroying brick-and-mortar retail across America, which in turn is doing a bad number on both suburban malls and town centers.
During a boom when nearly everybody has a good job, there's plenty of business for both online and brick-and-mortar retailers. But when times are hard, people are counting dollars and Amazon wins that game. Not because they're always cheaper, but because they're cheaper in tactical ways - for example, they drove Tower Records, HMV, and Virgin Records out of business by discounting most pop music titles by 35 percent, only to jack prices back up to near-list after their competitors went out of business. Amazon is ruthless. They're not the consumers' friend, and they're certainly not the workers' friend. But they are very good.
If you even bothered to read the summary, the branded products at Walmart have been given "other cost adjustments". That means they are lower quality products compared to the "same" model at other stores. Walmart is a disease.
Look at a rubbermaid mop bucket at Home depot. Then look at a rubbermaid mop bucket at Walmart. Then tell me their is 'no evidence'.
Walmart is notorious for squeezing so hard, they get a shitty, brand destroying version to sell.
Then you get 'brand destroying' enterprises like MTD mowers and you get a true shitstorm of junk.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
The war ended, as the last two humans on Earth, locked in desperate combat, struggled to slay the other, but each succumbed to exhaustion at the same moment.
Peace, then reigned, and goodwill was triumphant.
Get the government out of health care and health insurance entirely,
We already tried that in the UK. The NHS works better.
This.
The NHS, for all its faults is better than any other system I've used. It is certainly light years ahead of the Australian system... which is light centuries ahead of the US system.
The problem the US has is that health care companies have license to bill... then license to bill again. So they charge the government first, then the user. If the US simply forklifted an NHS system in, health care costs will drop almost immediately. The UK's NHS certainly has issues (GBP 10 million spent on erectile dysfunction drugs last year) but it is at least designed to put the patient first and does this pretty damn well. The US health care system is designed to protect profits, not people.
Remember that the US govt spends more per person on healthcare than the NHS spends per person. There's no way in hell the private industry can do it cheaper when they have to make a profit and report to shareholders (In the UK, the NHS shareholders are the people using the service).
Calling someone a "hater" only means you can not rationally rebut their argument.
Example, I've had the same damn $300 work boots for 5 years!
Which means that, five years ago, you have $300 of disposable income. Meanwhile, someone else who didn't had to spend $40 every six months on cheap boots that fell apart by the end of that time. At the end of the five years, they've spent $400, you've spent $300 and your boots are still fine, but that doesn't help them if they didn't have $300 to spend on boots at any point. To make things worse, they're now had to spend $100 more of their income than you. This is one of the bit reasons why poverty is difficult to escape.
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