Originally Posted by
carleton
You forget the economies of scale that Walmart has.... Plus they get amazing price breaks from the manufacturer and parts suppliers. ... Walmart can demand a price of $15 for the same part when they buy 5,000 units.
That is the HUGE difference.
Actually, they (and the other big box stores - but more Wally world) bully vendors into their pricing structure. Just read the countless articles on how companies have gone/almost gone bankrupt because of doing business with Wally. A client of mine has had several of their products in walmart for several years now, and it gets worse and worse each year. Although on paper it sounds good. When they launched a new product line, the buyer at walmart placed a "test order" of 300,000 units. But I know my client didn't even make $1 per unit off of that.
Oh, and the shipping - 37 lbs shipping weight. Those who said it has nothing to do due with true weight are correct. It's dimensional weight. At least for UPS it is something like [dimensional weight = length x height x width in inches divided by 198]