Originally Posted by Pat in Ca
Free markets just means that prices of goods and services are mutually agreed upon by the buyer and seller...no third party (Govt)
is involved... so competition for the consumer is good for the consumer, the seller must satisfy the buyer, or they go out of business... competition for the buyers $$ forces the companies to provide the services they demand.. or they go out of business.
If Walmart was not providing a service that people need... they would go out of business..
Competition forces the "good" to rise to the top.. that means some will fail.. but it creates more good....IMHO.. It does no one any good to prop up failing ventures..give the buyers what they want..they are the little guy and they should control the markets..
I should just ignore this and walk away.....but I can't. I AM one of those "mom and pop" stores that you basically say should compete with Walmart, and if I'm "good" I'll rise to the top and if not I'll fail....but if I'm destined to fail, why "prop me up"?
I'll tell you why. Even those little "mom and pop" shops are employing people. We are busting our buns EVERY day to make sure that we do the very best we can, that we have great customer service, and can best serve the customer's needs. We want to stay in business, and we want our employees to continue to have jobs.
Here is the major problem as I see it. Walmart comes to town. They promise lots of new jobs, cheap prices, economic stimulus. But, they also get breaks the "hometown" business doesn't - no property tax for 10-15 years for example. Anyway, they set up shop, and they do offer lower prices - does anyone doubt that a multi-million dollar corporation can buy in much larger quantities than local businesses? The more you buy, the better break you get. So, where they may order hundreds of thousands of oh, say Corelle 16 piece dinner sets, the small local business can only buy 50. Do you have ANY clue as to the difference in cost to the local business? Of course they are going to have higher prices - they are paying more to even purchase the product....heck, they might be paying more than Walmart charges you.
Does that mean they deserve to fail????? The fact that they aren't able to expand into being a multi-million dollar corporation means they aren't "good" and that they should fail? GIVE ME A BREAK!!!!!!!!!!!!!!!!!!!!!!!!!!!
My town used to have 2 fabric stores - not chain stores, independently owned fabric stores. There was bolt after bolt of every type of fabric, every kind of trim you'd want (like for moms who were sewing costumes for their kid's dance classes, baton corps, etc.), and they were busy as all get out. BUT, in moves Walmart, and after a few years, the store went away. A couple of other independent fabric stores tried opening up, but sadly, they ended up closing too. So, now, unless you want to drive at least 50 miles, you buy fabric at Walmart......but wait, they're closing the fabric and craft department!!!!!!!!!
They drive people out of business and get a monopoly on the market, and then they dump on the people they were supposedly there to help with their low prices.
I honestly can't count the number of businesses in my town that have closed due to Walmart. And I personally do not think it was because they were mismanaged, unreasonable, poor quality, lacking in customer care, or any of the reasons you have given for the "good" (aka Walmart) rising to the top and the "poor" failing. It's because it's a simple fact that they can't compete with the bulk price discount Wally World gets. Plain and simple.
And I'll give you a little clue about Walmart providing what people need.....in some cases that is true. But I'll also have you know that when people are into something complicated or need help and advice they come to us. What bites is that we do the best we can to help them out - identify the problem they are having, possible causes and what needs to be done to fix it.....and then they leave and go to Walmart and pick up the repair items "because they're cheaper". Of course, they didn't have a clue as to how to help them find out what they needed because their employees aren't necessarily properly educated in the fine points of the department they're working in, but they get the end sale. Now, let me ask YOU.....as a consumer, how or why would you go to a professional to find out what you need to have to fix a problem, then turn around, walk out that door, and go to the "cheaper place" to get the parts? Seems like the customer service was pretty darn good. Seems like the store did what they needed to help the customer. Sure doesn't seem like they "deserve to fail", now does it?