The American Pet Product Association has projected Pet Supplies to be a $43 billion pet product business in 2008 and Wal-Mart wants a bigger piece of the action. Wal-Mart is convinced that pets are recession proof but having companies like Wal-Mart, K-Mart and Target getting more involved in the pet industry, this is going to put a very serious hurting on the small Pet Stores across the Nation.
Wal-Mart is a big enough powerhouse that when it says it wants something done, its suppliers listen. So, if Wal-Mart leans on companies about ingredients from China, that will stop. The new presence of these big box stores in the pet industry means you may be able to get some good items if you can get food you feel good about feeding your dog cheaper, great. If Wal-Mart shuts down the stores that give you that choice, that's not going to be so great.
Melanine was one of the materials found in dog food not too long ago that was recalled and powerhouses like Wal-Mart and Target can help to assure products are manufactured healthier while saving the buyers a lot of money. It's a flip of a coin as to who will make out best in the long run. The losing side is once again taking thousands of additional small businesses out of the market in just a few short years, similar to the small town Hardware Stores and personal service we used to enjoy before the big guys came along. Convenient, yes. Good for the economy, no!
K-Mart, Target and Wal-Mart have all invested heavily in the Pet Supply Industry in the past 2 or 3 years. In no time they will completely own the Industry.
Will they be selling cars and trucks next? These are some pretty smart business people and I hate to say it but there's not going to be many more American Dream businesses left out there if these big companies sit back and watch, waiting for the next big business to come along and then steal the entire Industry out from underneath us all. Small Businesses will do all the hard work and as soon as they smell profits the Wal-Marts of the world will instantly take it away from them and run all the way to the Bank, their Bank that is, because they probably own that too.
So, all that being said, should our Government step in at some point and time and tell these big companies they must be capped at a certain amount of income each year? How do YOU think it should be handled, or do you think these big companies should have the right to do what they're doing?
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
31 comments:
Joe, with the "thread" you had in here the other day about the "credit card" problems at Sears, I wouldn't be surprised to see WalMart getting more into the "major" appliance business before too long. Don't know about cars, though - ha.
I said this the other day, they already are in the appliance business through Sam's Club.
The way I see it
If these big companies want to go for it then yes they have the right to do so. It’s the American way. Don’t get me wrong I’m a firm believer in the small mom and pop business which will always exist because you cant get that warm down home one on one personal feeling with these big companies.
If by doing this it causes people to lose there jobs, then no I don’t like that but that’s how this country is now a days and its all about making the big $.
Just think about it im pretty sure no company started off big like these companies are now. There was a lot of hard work in getting it where it was now and if the smaller companies were in the other shoes id be willing to bet they would be trying the same thing.
But that’s just how I look at it
Woof Woof Baby.
ok, now let the gov. cap all people's salary... hey that is what Russia did and other communists societies...
Once you start the process it would never stop.
What a bone head idea
BigEastFireDog,
It's easy to sit back and enjoy what many of these companies have to offer. However, I disagree with you on some issues here. First of all, you can't get that "down home experience" any more because those companies rarely exist because of these big companies. Lowe's and Home Depot destroyed the home town hardware stores.
Years ago you could walk into your local Car Dealer and they'd say, hey Mr. Albero, how have you been? Today they bombard you with one closing manager after the other almost making you feel like you're being pressured and or forced to purchase their vehicle. The sales staff, (not all of them mind you) are not well educated on the vehicles and their job is to get you in the car and experience the feel, that's it.
Pretty soon Home Depot will be selling Pre Fab Homes delivered right to your lot and the craftsman of the past will be long gone too.
This isn't a scare tactic, this is reality. My BIGGEST fear is when these companies fail, just like Circuit City just did. Remember the Bailouts, or have Americans already forgotten about that too? Banks are going under left and right.Why, because the Feds aren't anywhere near big enough to REGULATE these companies and keep tabs on them like they assure us they'll do. So because they can't and don't, now you and I are paying for that fallout.
We had better and far less protection in the past when the Italian Mafia ran this Country. We have none now and like I touched on in the original article, the American Dream will be nothing but words. We can do better than this. We can provide better jobs, health insurance, we can demand certain things from these big companies I believe our Government should demand. Just my opinion.
I say the free market system should rule the day. If you make another government department to regulate this, our taxes will go up even higher; even Mom and Pop's. That's the root problem here anyway. People think that the government should solve all our problems. That just makes government and our taxes bigger.
Double bowl cat dish:
Petsmart-$17.88
Wal- Mart-$2.88
Same bowl; 6x the price.
Both stores are national chains with big buying power.
If PetSmart doesn't Get smart, they will go down the tubes, and you can blame me. I bought it at Wal Mart.
anonymous 1:10,
Look bonehead, one day when you grow up and stop talking out of your rear end you'll come to learn that our Government already caps our income. I'll not get into that right now because it's obviously WAY abobe your income level for you to understand.
My point was not SALARY as in personal income. My point is, should there be a cap in how much money a company can make in a year? If you feel making 10 billion dollars a year in profits means capitolism, then I would have to say that I believe at that level the United States should cap it and force them to break up their companies in order to make them hire more employees.
I completely agree Joe Like I said im a big fan and supporter of the small mom and pop business, but its up to us to keep them around. Yea we all look for the best way to save a buck and and if you can get a bag of dog food and every thing else at one store cheaper then the people are going to do so. We as Americans that support the small mom and pop business need to stick together and insure that they are here to stay. But like I said if these big companies want to start selling all of these items there going to do so because all they want is the bigger $. And the American government we have allows them to prosper no matter what.
I buy my dog food/pet items from the same wholesaler that PetsMart and Wal Mart use.
Same tractor trailer comes right to my house.
Joe - I would think you would do the same. Let me know if you don't and want contact info for the distributor.
Wal Mart can do what they want.
Sondra Daisey
OK Barry G,
Now let's get down to reality here.
So you saved some big money buying that same product from Wal-Mart versus Pet-Smart. You probably think you made out well, right?
WRONG! Allow me to explain. You see, the Wal-Mart Employee that stocked that product makes close to minimum wage and has no quality health insurance. The company that manufactured that product is under demand to take back ANY item Wal-Mart chooses to return, NO QUESTIONS ASKED! Let's say an Employee in their FDistribution Center in the Midwest dropped the item and brokje it. It can be returned, period. Wal-Mart gets full credit for the item.
Now, the manufacturer selling to Wal-Mart just made a 2 to 3% profit. However, when they deal with all those returns for any reason, that's not so good andit happens all the time. Why do YOU think they'll take stuff back even without a receipt?
OK, moving on. That same manufacturer sells to an indipendent story like Pet-Smart or a local Pet Store. They sell if with a 50% profit and they can then provide health insurance for their staff and have employees who get bonuses, (something Americans don't see any more) and so forth and so on. However, Wal-Mart keeps growing and the manufacturing company is under a contract to deliver x amount of products each year and they completely overwhelm the manufacturer to a point in which they can no longer sell to Pet-Smart and so forth.
Now I'm not kidding you when I get to the beef of this story because it's VERY RESAL!
Wal-Mart then sees this item is a huge mover nation wide and they come to the company and say, I'd like to buy you out and have more control over manufacturing. The company says they're not interested because they're enjoying the increased business. Wal-Mart then says, OK, we can appreciate that. We'd like to double our volume over the next year but we need a guarantee you can deliver that volume by this date next year. OK, says the manufacturer. The manufacturer then runs to his Bank and says, we just hit a major home run. We're NOT selling to anyone else any more as Wal-Mart has overwhelmed us with business and they now want double the volume. The stupid Bank says, WOW, GREAT! We'll loan you the money based on your contract. They expand their manufacturing facility but they're not quite able to deliver exactly double the volume of products Wal-Mart demanded under contract. In the mean time, Wal-Mart buyers go to China and ask for that exact same product, (knowing the American manufacturer can't meet the demand) and they buy the same product you just mentioned for 50 cents cheaper than the American Company.
Once the American Company fails to meet their contractual agreement Wal-Mart starts refusing to accept any more shipments from the American manufacturer and since they stopped selling to ALL of the other distributers because of Wal-Marts demand, they go out of business instantly and China once again gets the business from a failing American manufacturing market.
You see Barry, I've been around the block in manufacturing for many years. GE, Sylvania, Philips, Kodak, Agfa and E.I. Dupont ALL tried to do the same with me on my products and I refused to cooperate and fall for that crap. I kept my small Distributors and Dealers and forced these manufacturers, (as well as many others who didn't offer to buy me out) to continue to buy from me but it was a gutsy move on my behalf. I saw too many of my friends fall for this and fail and I wasn't going to let that happen.
Now let me assure you, the money and offers were almost unbelievable and almost too good to refuse but all I kept thinking was, if I sold to kodak, that meant Fuji, Dupont, 3M, Agfa, Konica and many other manufacturers would have nowhere to go and I wasn't going to sccrew all of those people who had brought me to where I am today.
I'm sorry this is so long but I needed to make my point. TODAY, because of the Wal-Marts of the world, we, you and I, are paying HUGE amounts of money into Bailouts because of such stupidity and lack of regulation. If we're NOT careful, this Country can and will fail within the next 10 years. It's a given Folks.
So enjoy that savings Barry but trust me, you paid a whole hell of a lot more for that bowl than you realize, once you're FORCED to pay off those Bailouts. Don't forget the little man Folks and they won't forget you.
wow...my butt's sore...
Well Said Joe
"TODAY, because of the Wal-Marts of the world, we, you and I, are paying HUGE amounts of money into Bailouts because of such stupidity and lack of regulation."
I can in no way agree with this statement. Our current situation is the result too much Government intervention (Janet Reno threatening banks if they didn't make more loans available to minorities) and greed (a GSE head buying up bad loans to inflate his bonus).
Just recently, we reached a milestone where there were more people working for the Government than manufacturers in this country. The last thing we need is more Government people overseeing free enterprise.
I buy from WalMart because they they offer commodity products at lower prices. On the other hand, I almost exclusively buy electronics made by Apple, even though they are more expensive, because I think they provide me with a superior owner experience. Just today, look at Wallstreet and compare Microsoft and Apple.
anonymous 2:53,
There are going to be MANY people here from the Eastern Shore that just aren't capable of grasping everything I said. It's not your fault and I respect that. ;-)
To those of you who could actually make it all the way through my comment and horrible spelling, (sorry) I hope it was worth the read.
Thats the truth Joe! I just read where the Apple I pod technology was developed in the U.S. but it's manufactured in China for a cost of $4.00 versus $12.00 here. How many jobs are lost in this country due to gobal imports. I just wish that we were playing on a level field. Some may disagree but alot of this has to do with lobbyist.
I certainly wished I understood why our goverment allows this to happen.
Because WE never say or DO anything!
Americans need to get fed up. Americans need to stand up to our Government and demand Change. Not just words like Obama pampers everyone with. WE DESERVE CHANGE!
When a Fortune 500 Company proves their corrupt, you fire everyone and recreate the wheel, so to speak. Not Congress! They SELL their seats and believe me Folks, you're only told about the ones they WANT you to know about. If this was actually done recently, believe me, they learned it somewhere and were cocky enough to think they could fight it.
SHUT DOWN CONGRESS FOR 2 YEARS!
Bring in people to replace them that are clueless. Hell, it's a whole lot better than the people they have in there now. I mean, how much money can they lose? The PROFESSIONAL BS ARTISTS in there now have lost us HOW MANY BILLIONS NOW?
Sadly, the way the system is set up now, you can never cleanup Congress unless you completely shut it down.
Remove ALL pork from ALL bills. When you buy a coke or pepsi do you ask for more sugar? NO! It is what it is and if it's NOT good enough, DON'T BUY IT!
You see Folks, if I were Mayor of Salisbury, all the BS would be over with. The more that Mayor supported Developers the more desperate she became, digging herself into a hole I knew she could never climb back out of before being forced out of Office.
As for China, they're laughing all the way to the Bank! HAVEW YOU VIEWED THIS VIDEO TODAY?
http://sbynews.blogspot.com/2009/01/did-you-know.html
Do It! Clinton F'ed us years ago and every day that passes and we don't do something about taking our country back with smart business men and women, the closer we are to speaking another language here.
WATCH THAT VIDEO!
Totally agree, the American public
does not realize their buying power. We need to make a statement
and stand together. I will defintely watch the video. The internet is the tool to test a product.
The one thing not brought up here is another reason why small businesses fail is because they can't compete with the insurance companies with rates for their employees. When I worked corporate I paid 65% less on my premiums then when I went to work for a small business. The truth be told I got a $2 raise but brought home less money. The small businesses have to pay more for employment to compensate or just hire substandard people for less. They got a double wammy to deal with.
Joe,
While I whole heartedly agree with and understand the post I must say you confuse me a bit.
Not long ago you were beating the drum for Sam's Club regarding gas prices over Gordy Tigermart. As far as I know Gordy is a locally owned business and of course we know that the majority of money spent at Sam's leaves the area.
I realize there was more to that arguement than price alone but I will leave that alone.
My family spends more than we should because we support the local business rather than the chains at every opportunity.
MA
I new I could bring you around Joe. You can see the light on this side of the fence. They are corporate power devils interested in one thing and one thing only, as much profit as they can get. A company making profit is good business, a company destroying every small business they can and doing so with the help of county and city municipalities all over this country until they control a monopoly over all markets they desire is concentrated capitalism. Not to mention the exploitation of so many forein workers, its a crime. Do you see the light?
MA,
Your question is honorable and fair. My dealings for many years with Sam's Club was for corporate purposes. I owned a Bar/Restaurant and two Upscale Billiard Rooms at the time and I was purchasing from Distributors that started demanding minimum orders, far too much for us to handle at the time without everything going bad.
The idea of promoting Sam's Club for two main reasons over the past few months was their FANTASTIC NATHAN'S HOT DOGS and their low gas prices. Sam's Club regularly, (but not all the time) was keeping everyone else honest. Keep in mind, when someone else like the Chicken Man or Valero were lower, we promoted them as well. It brought us to deliver daily gas prices still offered today on the home page of this Blog. Sam's is NOT always the best price, as you can clearly see daily.
Their business offers advantages for small businesses who are in the same situation I was in years ago. I regularly see MANY local restaurant owners purchasing items at Sam's. However, let me tell you this. I purchase ALL of our horse feed from Bryan Brittinghams. We purchase ALL of our hay from a local Famer. We hire a local man to trim the hooves of our horses. We have 90% of out vehicle serviced by a local mechanic not 1 mile from our home.
In other words, we spread the wealth around as much as we possibly can. I hope that helps answer your question.
I believe in the free enterprise system and we should let the market work without government interference. The China situation will change when we take them off the most favored nation list. Can't wait til we have a Congress and President with guts.
Walmart does offer health benefits to all workers even part timers. Walmart does not get back all the money from returns. Some are returned for credit and some thrown away as a cost of doing business. All food returned even canned goods are thrown away for safetys sake.
Walmart increases our standard of living by allowing people that choose to shop there get a better deal. It is just not true that Walmart puts small businesses out of business. It only puts out businesses that can't change with the new situation. And look at how other businesses fight to locate near the new Walmarts.
There is enough business for all smart people tht have a good business model and are flexible to change.
anonymous 4:51 is none other than Muir Boda. Hence, this is exactly why he shouldn't be running for anything in Salisbury. Clueless low paid robot for Wal-Mart. One day when he grows up and moves away from Mommy and the Eastern Shore he'll know better. Till then, Wal-Mart is the Microsoft of the Eastern Shore.
As for the Insurance, I never said they didn't offer Insurance. I said "no quality health insurance." I also never mentioned parishables Muir. I was strictly speaking of manufactured products, I'm right, you're wrong.
You went on to say, "It only puts out businesses that can't change with the new situation." Are you just completely clueless? I'll bet you count the days when Wal-Mart has their national conference where everyone sings together by the thousands and hug one and other like a group of sissy's. Of course that makes you feel good, because not everyone gets to go, right? I mean, someone has to stay behind and work the floor.
I'll even bet you polish your yellow smiley face pin on button and get an extra star for doing so as Employee of the Month. Golly Gee Willikers.
I didnt think I could like you more, I was wrong. Remember the phone company? Its called a monopoly and no small business(local owned) can compete.
I forgot all about your Sams Club issue. I was wondering why you weren't posting their gas prices daily.
This is what I've said about Wal-Mart for a very long time now. I'm glad others are starting to see the light- I just hope that they back up words with actions.
Wal-Mart is not particularly family friendly, and their prices aren't necessarily all that much cheaper. I've found many things at Giant that are either the same price or within a very few cents of one another at both stores- and Giant is a far better shopping experience (at least to me).
I must admit, though, that I really like Target. Can't help that one. Otherwise, we try to support local businesses, especially produce stands when in season.
Joe (1:58pm)
You said: "Why do YOU think they'll take stuff back even without a receipt?"
WALMART no longer takes stuff back without a receipt. Right before Christmas my wife and I tried to return a gift that we had received, but didn't have receipt. We were certain the gift was bought at Walmart- but had no receipt or gift slip. The manager at the Fruitland location told us that it was NOW their policy to not take items back without a receipt. FYI.
anonymous 10:56,
I'm not saying I doubt you at all. However, I have watched women go up there recently with NOTHING and raise enough stink, they get whatever they want. Peoploe like you and me, they walk all over us because we're not professional shoppers. Maybe things have changed, I don't know. Again, I'm talking about manufactured products, this is what they can return, no questions asked. Well, obviously they'd like a receipt. I can't blame them for wanting some people to prove that's where they bought it.
Just wanted to elaborate a little on what Joe explained with a personal note...
Several months ago,I was finally forced to replace the front tires on my car.Thinking it was the best way to save some bucks,we got them from Walmart.By the time they added on everything extra it was around $120 or so.A week later one of the new tires is totally flat,but there is no visible damage-I call Walmart and they inform me I am SOL unless I bought additional "tire warranty" coverage.So I take the tire to a local shop to have it repaired.Two weeks later,I decide to go ahead and replace the rear tires before winter sets in.I ask the local garage,family owned,to give me a price on two tires.He came in maybe $20 bucks higher than Walmart,but I was getting a higher mileage tire and paid one flat labor rate instead of additional charges for every little service.AND he stands behind his work because he lives in the local community and has a reputation to keep.Let me also add that about two Thanksigivings ago,on the Wednesday evning before,I rushed over to this business to have a tire repaired(I somehow pick up nails like a plague) and with 5 minutes til closing,the owner not only repaired the tire,but refused to take any money for it because "its Thanksgiving".
If we do not support these people,we will lose them.And they are not always as expensive as you might think!
Sorry it was so long but you get my point...
joe-
i don't think i want to shop at wal-mart anymore... :(
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