5-gallon yellow fuel cans

[AndyM]

For all you know the same manufacturer is making the cans sold in both Wal-Mart and TSC. He probably sold to WM at a significantly lower price than he sold to TSC. Why? Because WM ordered 1 million and TSC ordered 1 thousand. This allows WM to sell cheaper. They make up for the lower profit margin by selling in volume, the same as the manufacturer did, by selling to WM in volume. It's simple economics.

Actually, Walmart is large enough to do things pretty much however they want...

Let's say AndyM Inc. makes "product Z" at a cost of $10.00...
Walmart says they will take 100,000 units of "product Z", but they will only pay me $9.00 each for them. Additionally, if I don't want to do that, they will drop my "product A" through "product Y" off of their shelves until I choose to do things their way.

If I want shelf space at the country's largest retailer, I'm forced to cut costs to the point of being profitable again (ie. move production to China).
AndyM Inc. could choose not to sell to Walmart, but someone who chooses to cut costs (move production offshore) will ultimately step in and fill that shelf space, and my sales have fallen from 100,000 units a year to 100 units a year at the mom and pop hardware store.

That's how it works...
You don't tell Walmart what you can do for them; they tell you what you will do for them.

 

[Iowachild]

Anyone know of a place online that carries the yellow diesel metal can? I can't find them local.

Thanks

Randy,

Found these cans on the Northern Tool site: Justrite Diesel Cans They come in yellow, red, blue or green.

I know I spend more at my locally owned hardware store in a year than I do at Wal Mart. I like to buy quality and that's something that isn't stocked too often at Wal Mart!

 

[JHTFarmer]

For all you know the same manufacturer is making the cans sold in both Wal-Mart and TSC. He probably sold to WM at a significantly lower price than he sold to TSC. Why? Because WM ordered 1 million and TSC ordered 1 thousand. This allows WM to sell cheaper. They make up for the lower profit margin by selling in volume, the same as the manufacturer did, by selling to WM in volume. It's simple economics.

I personally don't feel sorry for the small retailer. The fact that WM can come into a community and under sell the little guys is really the free market economy in the USA doing what is should be doing. It's the American way.

You can choose to pay more for the same product which gives you less to spend on other things. I would rather spend less for the exact same product and maybe buy something else.

I do feel sorry for the small retailer and the manufacturer. WalMart is an aggressive company. Possibly they have decided to undercut everything they sell in common with TSC by 40%, they'll just take a loss in this area until they drive off the competition, then the prices come back up, you have nowhere else to shop, and the shareholders continue smiling.

Sure WalMart buys in huge volume, but in the end, I believe we all suffer as well paying manufacturing jobs are driven out of the country and trade deficits continue increase without end.

that's all i have to say

 

[Gatorboy]

So, Tractor Supply must be price gouging! That's what I hear when one gas station charges more than another.

 

[Gatorboy]

Forgot to add... I don't shop Walmart... never will.

You send your wife, eh?

 

[Farmwithjunk]

So, Tractor Supply must be price gouging! That's what I hear when one gas station charges more than another.

More importantly, how much is a yellow 5-gallon can full of milk in your hometown?

 

[NewToy]

Here a while back a CEO by the name of Jim Wier told Wal-Mart he didn't want to do business with them. This may sound shocking to some, why would a CEO not want access to 3,811 stores to sell his product? They wanted him to make a Murray mower with the Snapper name. He went to Bentonville, was seated in an old chaise lounge chair and had to wait to tell them he didn't want their business. He refused to cheapen the product to meet their pricing criteria. They were left slack jawed when he left, probably still scratching their heads. Wal-Mart will take a product and have several mfgs look at it and then put in their bid (price). They have gotten so big they can pretty much have their way with alot of major manufacturers. They will jump through hoops for Wally. Good for Jim Wier!

John

 

[NewToy]

So, Tractor Supply must be price gouging! That's what I hear when one gas station charges more than another.

Too bad there is no YellowgascanBuddy.Com. You would be in Heaven.
John

 

[Gatorboy]

Too bad there is no YellowgascanBuddy.Com. You would be in Heaven.

It's obvious not everyone can be a comedian. Keep practicing though.

 

[NewToy]

It's obvious not everyone can be a comedian. Keep practicing though.

I thought you would be flattered in the most sincere way. You've obviously cornered the comedic slam so I had better quit while I'm behind. Just keep the cerebral banter coming, along with your astute business observations.
Thanks,
John