Don_DickleIf someone opened a store and just sold stuff at cost, which undercuts every other competitors by alot. Would this not for the big corps to come way down on their prices?
To put it simply, cost isn’t the same for everybody.
Even beyond this:
Coca-cola and Walmart had a secret inside deal. Nobody could sell coke products for less than Walmart.
When they find out smaller grocery stores are undercutting Walmart to drive traffic, the wholesaler/distributor will go into those smaller chains and force them to pay even higher wholesale prices to force them to raise their prices.
Walmart gets bulk discounts nobody else on the planet receives, then games the market to hedge themselves against everyone else - not setting a fair market price floor, but rather a price ceiling.
They get to be the lowest priced, everyone else the highest.
AngryDeuceDude, as someone that worked, briefly, in retail at a corporate level, the agreements between the major players like Coke and Pepsi and the big boxes are like some Van Halen “no brown M&Ms” level shit on both sides of the equation.
I have seen emails describing what happens when a coke representative walks into one of those stores and finds that their product is not merchandised within X feet of X aisle or is out of stock on the shelf and there are serious financial sanctions for that shit. Something is minor as a customer setting a 12 pack of 7-Up on top of the stack of Sprite has gotten escalated to levels that would be ludicrous to a layman.
Everything, every single shelf or peghook or rack in that store, has a dollar amount attached to it, and the sums of money being exchanged over whether your product is placed at eye level or down on the bottom shelf is unreal.
At least the brown m&ms we’re to see if people read the contract. That’s just asinine