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Walmart has this to say...what do YOU say?

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Faster horses

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BEEF PRICES HURT DEMAND: Wal-Mart meats manager

by John Halbert, Miles City Star Staff Writer

People in the beef industry would do well not to become complacent about what seems to be strong consumer demand, said the manager of the nation's second-largest beef retail operation. Current high prices are adready reducing sales.
It is not strong demand that is keeping cattle and beef prices high, but rather limited suppply, said Ken Stettmeier. Wal-Mart fresh meats merchandise manager. He spoke March 10 at a Bozman teleconference that allowed questions and participation from about a dozen Mt. communities.
Several factors are conspiring to reduce beef's market share, Stettmeier said. They are related both to hard economic facts and to customer psycology.
Contrary to several economic analyses, the Dec. 2003 discovery of a BSE-infected cow in the US did cause a drop in sales. Stettmeier said Wal-Mart saw a 250-basis point drop in beef demand after the discovery was announced.
Ironically, demand for whole-muscle beef cuts fell, while demand for ground beef went up. Of the two, ground beef that includes trimmings that may come from close to the spinal cord carries a greater risk of contamination by the prion proteins that mark BSE or mad cow disease.
Another factor, which Stettmeier noted in response to a question from broadcaster Taylor Brown in Billings, is energy prices.
"Energy prices started it," Stettmeier said. "Our customers have to be very careful with their dollar." He also noted that high energy prices drive up Wal-Mart's costs for processing and transportation.
"Don't misinterpret supply with demand," Stettmeir told Brown after Brown questioned his assertion that demand is declining. "Supply is down, demand is not up. We're down 1.7 million pounds in 2004 from 2003."
He said Wal-Mart has 1,835 Superstores that sell beef across the country to 100 million customers.
"Our beef sales are not what they used to be, due to higher prices," Stettmeier said. "We have 16 feet of meat case space for beef. We're doing everything we can to push beef, but price is having an impact on our customers."
"Our tonnage is down. Yeah, we've increased from 1998, but in 2004, we've seen demand wane."
They are turning to alternatives, he added. "Chicken had a fantastic year last year. Beef fell, due to price."
Rudy Stoltz of Winifred, Mt. commented, "If supply in the US is so low, what would the price be if Japan (closed to US beef since the BSE discovery) opened up? We better be looking down the road four or five years when the supply meets demand."
Stettmeier was asked if there was a possiblity that the corporation might turn to more expensive brand-name niche products. He replied that low price is and will always be Wal-Mart's marketing strategy. "If we're not the low-price leader, what are we shopping at Wal-Mart for?"
Wal-Mart's focus on price led to some discussion of Country-Of-Origin Labeling, which was strongly supported in some quarters. Stettmeier stressed that Wal-Mart intends to obey the law, but called it onerous and expensive and said Wal-Mart's position is that COOL should be voluntary.
He said the estimated cost for Wal-Mart to comply with the existing COOL law is $16.4 million, with a total of $9 billion estimated for the industry as a whole and $1.3 billion of that estimated as the cow-calf sector's share.
"If you think putting 'USA' on the package will sell more beef, I say our customers will buy the lower price," Stettmeier said. "All I'm saying is, be careful what you ask for."
He used the example of ground beef that had been irradiated to kill bacteria, a product that offered the consumer a higher level of safety. It wa offered side by side with regular ground beef, at a 30-cent spread to cover the cost of the irradiation process.
"The consumer bought the cheaper beef," he said, adding that he has worked at Costco and Sam's Club as well as Wal-Mart. Those stores had offered lamb from New Zealand and Australia, all openly labeled with the country of origin.
"Ninety-five percent or higher will pick up that product that's a lesser retail price without a doubt," Stettmeier said. "If the customer gets it home and it meets expectations and they're satisfied with it, they're going to go back and buy more."
 

Mike

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Well FH, you asked our opinion.

Mine is that Wal-Mart won't be satisfied until they control the market in each and every aspect of food products and consumer goods, which they basically do now. They have ruined many "Mom and Pop" stores in this country with their cheaper prices, and at the same time eliminating customer service from the equation.
Whatever they say on the record is skewed toward profits, period. As you can read from the article, selling a lower priced product is their ultimate goal and have no interest in selling U.S. products unless it is cheaper.

I personally abhor what they stand for.
 

Denny

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Mike said:
Well FH, you asked our opinion.

Mine is that Wal-Mart won't be satisfied until they control the market in each and every aspect of food products and consumer goods, which they basically do now. They have ruined many "Mom and Pop" stores in this country with their cheaper prices, and at the same time eliminating customer service from the equation.
Whatever they say on the record is skewed toward profits, period. As you can read from the article, selling a lower priced product is their ultimate goal and have no interest in selling U.S. products unless it is cheaper.

I personally abhor what they stand for.


When I was a kid I wanted a new Bike I had to earn the money myself and the bike was a HUFFY BMX style bike this was in 1978 and it cost $119.00 from a mom and pop hardware store.I can buy the same style bike now27 years later for around $80.00 hoe much GREED was set in the price by mom and pop.We have a hardware store in town here he was selling [email protected] shovels for $12.00 each well when his price sticker fell off the Target price tag was still there and it was a $4.99 tag thats $7.01 price increase for a 20 mile trip from Motley to Brainerd where the target is.

The majority of these mom and pop stores gouge their customers I have a hard time feeling sorry for them.Sure big business is putting the screws to them but thats just business.

If Walmart can help keep my total family spending down that in itself lowers my bottom line across the board next thing you guys will complain about is the child labor for there products. Maybe every farmer should sit back and think how much child labor is there in your product or how much child labor did you put into your parents operations.

No matter what business your in you need to offer the best possible quality at the lowest possibe price period.
 
A

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Denny: "No matter what business your in you need to offer the best possible quality at the lowest possibe price period."

You nailed it Denny!

That's business!

Want to start a riot, go to a trailer court and yell "WALMART SUCKS".


~SH~
 

CattleCo

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He used the example of ground beef that had been irradiated to kill bacteria, a product that offered the consumer a higher level of safety. It wa offered side by side with regular ground beef, at a 30-cent spread to cover the cost of the irradiation process.
"The consumer bought the cheaper beef," he said, adding that he has worked at Costco and Sam's Club as well as Wal-Mart. Those stores had offered lamb from New Zealand and Australia, all openly labeled with the country of origin.
"Ninety-five percent or higher will pick up that product that's a lesser retail price without a doubt," Stettmeier said. "If the customer gets it home and it meets expectations and they're satisfied with it, they're going to go back and buy more."

What part of this statement does R-Calf not get? The buying public has confidence in our food safety system.....period! Recalls are bad, but it gives the public confidence the system works. I am not a big wal Mart fan but they are getting thejob done. One of the reasons Wally World can offer decent prices is they are not paying UNION SCALE!!! Look what the Union Boys have done to the textile and auto industries!!!!!!!! :mad: Folks the wreck has started!! Have a good one!
 

Sandhusker

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What a lot of people don't realize in their quest to save a dime is that they're not always getting the same products that they think they are. Example: Van Kamps pork and beans. You think you're getting a better deal at Walmart than the local guy on the corner - but you're not getting the same product. Van Kamps can of beans is different for Walmart - they have demanded their own version of the product. Do you think it is higher quality? Do you think Van Kamps is the only product Walmart does this with?

Does a guy need to point out to you what happens to that extra dime that gets spent at Mom and Pops? How many little league teams get sponsored so YOUR kids can play ball? How many donations are made to your church so you can keep the doors open? How many donations are made to schools, local charities, etc... that Walmart does not make?

How about the extra governmental services that are needed because of the low wages and benefits Walmart is famous for? Who do you think pays for those free school lunches, energy assistance, etc....? Have you stopped to realize that people making low wages with minimal or no benefits are tax receivers instead of payers?

What about the drag on the economy that Walmart's trade deficit alone creates?

How much money are you REALLY saving?
 

Mike

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Denny:"No matter what business your in you need to offer the best possible quality at the lowest possibe price period."

So, if you have 5 bidders, do you take the lowest possible price for your calves? Or do you take the HIGHEST possible price? Or do you take what the market will bear? I'm confused.
 

mrj

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Has anyone noticed that the "mom & pop" local stores that tend to business, taking very good care of their customers, participate in an organization above the local level for their store, seem to be the ones that succeed and remain in business?

Have you wondered what those "underpaid" employees would be doing if Walmart wasn't there? How many of them would be on welfare because there were no jobs available for their level of education or training? That creates government costs, too.

We are going to have to learn that we MUST get some education before we have babies to support. The world owes no one a living! Maybe we should look at the "quality of life" in many other countries before we complain too much about the "" corporations we seem to love to believe are keeping us down!

Maybe we should also consider seriously how our own choices or just letting life "happen" to us are "keeping us down"before we assign blame to corporations that have had a part in making our food supply the safest, higtest quality and most varied in history.

MRJ
 

rancher

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MRJ said:
Has anyone noticed that the "mom & pop" local stores that tend to business, taking very good care of their customers, participate in an organization above the local level for their store, seem to be the ones that succeed and remain in business?

Have you wondered what those "underpaid" employees would be doing if Walmart wasn't there? How many of them would be on welfare because there were no jobs available for their level of education or training? That creates government costs, too.

We are going to have to learn that we MUST get some education before we have babies to support. The world owes no one a living! Maybe we should look at the "quality of life" in many other countries before we complain too much about the "" corporations we seem to love to believe are keeping us down!

Maybe we should also consider seriously how our own choices or just letting life "happen" to us are "keeping us down"before we assign blame to corporations that have had a part in making our food supply the safest, higtest quality and most varied in history.

MRJ

MRJ these people you talk about we are helping stay off welfare, well read this.

Harry Pachon of the Tomas Rivera Policy Institute in Los Angeles said the growth in illegal immigrants has risen with the U.S. economy, with American businesses such as Wal-Mart looking to contractors who rely on undocumented workers "to fill jobs no one else will fill."

http://www.billingsgazette.com/index.php?id=1&display=rednews/2005/03/22/build/nation/35-illegals.inc
 

sodapop

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Although it is nice to buy things at a cheaper price, do you really think that price tag will stay the same (at Walmart) after they have broke all the mom & pop stores. I think you will all of the sudden see a tremendous price hike, and there will be no one to compete to keep Walmart in check.

If you think that anyone can start back up to keep Walmart on a price check, I think you will find that all the suppliers will be on contract with only Walmart, and therefore make it impossible to get started.
 

TimH

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Sodapop- "Although it is nice to buy things at a cheaper price, do you really think that price tag will stay the same (at Walmart) after they have broke all the mom & pop stores. I think you will all of the sudden see a tremendous price hike, and there will be no one to compete to keep Walmart in check.

If you think that anyone can start back up to keep Walmart on a price check, I think you will find that all the suppliers will be on contract with only Walmart, and therefore make it impossible to get started."

I think that if the scenario you describe here actually developed ,you would see the free enterprise system correct it quite quickly.
If Wal-Mart was suddenly making huge per/unit profits, another retailer would step up to the plate and try to make them as well.
The fact that Canada's slaughter capacity has increased by over 20%,in response to large packer margins, in less than 2 years is evidence of this concept. It' called competition.

One thing I buy at Wal-Mart is hydraulic oil. $29.00/per pail compared to $48.00/per pail from Esso or Shell. This lowers my cost of production and is a good thing.
 

Mike

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I have in the recent past done business with Wal-Mart. They know that profit has just as much to do with their "Buying" price as it does their "Selling" price. They are ruthless in their "Buying" schemes.

For instance:
1-When Wal-Mart approaches a small company to supply them with product they slowly become the only customer for that company, then demand the price be lowered, or else.

2-After buying products from me, they would send ordered but unsold (along with "store damaged") merchandise back and deduct the price of those products from my check along with packages that were opened, etc.

I understand that someone has to supply goods to Wal-Mart and that is probably the reason that the overall majority of their products come from China. There is plent of margin built-in.
 

Itrap4u

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Yes the man from Wal Mart speaks the truth! Before anyone can look at Wal Mart and start bashing them, look no further than your own mirror! Wal mart is what it is, because the consumer made them what they are no other reason period!
WE shop at wal mart because we save money and get the same quality or same products at a reduced cost spreading our dollar further. Now some things I don't buy at Wal mart because I can get it cheaper elsewhere, but by and large Wal Mart offers the best bang for the Buck, and as long as they continue that, people will continue flooding there stores, it is the consumer not Sam Walton that made wal mart the super power they are!
They buy in massive volume and pass some of the savings on to you or I, and people want decent quality at a fair price, doesn't matter beef, pork, clothes, or laundry detergant. I would agree that by lableing meat if there is a cost savings by buying Canadian Beef versus US, and it is a savings, people will pick the non US beef, in most cases. It's just a fact of life.
People look for the very best deals on items termed as needed to live, and will seak out the very best value, so they can spend there savings on other items not deemed such.
 

mrj

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Lots of good thought here!

Rancher, what is the agenda of Mr. Rivera? The illegal immigration problem is a real can of worms. I do not believe Walmart is to blame for it.

Weren't "we" saying similar things about K-Mart when they started up to what is now being claimed of Walmart....that it is the demise of freedom in our nation, at the least?

Does anyone believe there will be no "upstart" who figures out a way to take on Walmart?

Sure can find lots to fuss about. Maybe it is time to take stock of the blessings of living in this nation with all the problems we have. Sure are enough illegal immigrants wanting part of it and willing to risk their lives, then work hard for itf once they get here.

MRJ
 

agman

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Mike said:
Well FH, you asked our opinion.

Whatever they say on the record is skewed toward profits, period. As you can read from the article, selling a lower priced product is their ultimate goal and have no interest in selling U.S. products unless it is cheaper.

I personally abhor what they stand for.

Response.. Why would you abhor success? They have changed the face of all retailing to the benefit of consumers and produces. If they did not make the mom & pop shop better they were going out of business anyway. Don't blame Wal-mart for their demise. Have a great day.
 

Mike

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agman said:
Mike said:
Well FH, you asked our opinion.

Whatever they say on the record is skewed toward profits, period. As you can read from the article, selling a lower priced product is their ultimate goal and have no interest in selling U.S. products unless it is cheaper.

I personally abhor what they stand for.

Response.. Why would you abhor success? They have changed the face of all retailing to the benefit of consumers and produces. If they did not make the mom & pop shop better they were going out of business anyway. Don't blame Wal-mart for their demise. Have a great day.

I do not abhor success. But then again, it depends on one's definition of success. If you think that success is only about making money and power, you might have some more schooling in your future.
 

TimH

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Mike- "I have in the recent past done business with Wal-Mart. They know that profit has just as much to do with their "Buying" price as it does their "Selling" price. They are ruthless in their "Buying" schemes."

What is the difference between Wal-Mart trying to reduce their costs by buying their inputs at a low price, and you breeding high gaining ,feed efficient Charolais cattle in order to produce more pounds of beef using less dollars worth of feed???

Are you guilty of putting the squeeze on feed suppliers?? Are you putting the squeeze on the breeders of less efficient cattle?? :wink:

How can you be so RUTHLESS?? :lol: :lol: :lol:
 

alabama

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"Ask not what your country can do for you. Ask what you can do for your country."
I feel that big business has taken the moral side of the equation out of their decision making process. And in today’s market, it is often that you need to get big or get out.
Just an observation.
 

Mike

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TimH said:
Mike- "I have in the recent past done business with Wal-Mart. They know that profit has just as much to do with their "Buying" price as it does their "Selling" price. They are ruthless in their "Buying" schemes."

What is the difference between Wal-Mart trying to reduce their costs by buying their inputs at a low price, and you breeding high gaining ,feed efficient Charolais cattle in order to produce more pounds of beef using less dollars worth of feed???

Are you guilty of putting the squeeze on feed suppliers?? Are you putting the squeeze on the breeders of less efficient cattle?? :wink:

How can you be so RUTHLESS?? :lol: :lol: :lol:

I admit, it wasn't fair for me to even respond to the post about Wal-Mart. My personal dealings with them would skew any kind of reasonable thought processes. It's a fact. I hate 'em. That much cannot be changed by anyone. Sorry!
 

agman

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Sandhusker said:
What a lot of people don't realize in their quest to save a dime is that they're not always getting the same products that they think they are. Example: Van Kamps pork and beans. You think you're getting a better deal at Walmart than the local guy on the corner - but you're not getting the same product. Van Kamps can of beans is different for Walmart - they have demanded their own version of the product. Do you think it is higher quality? Do you think Van Kamps is the only product Walmart does this with?

Does a guy need to point out to you what happens to that extra dime that gets spent at Mom and Pops? How many little league teams get sponsored so YOUR kids can play ball? How many donations are made to your church so you can keep the doors open? How many donations are made to schools, local charities, etc... that Walmart does not make?

How about the extra governmental services that are needed because of the low wages and benefits Walmart is famous for? Who do you think pays for those free school lunches, energy assistance, etc....? Have you stopped to realize that people making low wages with minimal or no benefits are tax receivers instead of payers?

What about the drag on the economy that Walmart's trade deficit alone creates?

How much money are you REALLY saving?

Sandhusker..You really need to get out of your little dream world of myths and fabrications and get some facts to back your baseless and senseless opinions regarding Wal-Mart.

Product difference - prove your point - have you counted the number of beans in each can?

Low pay - prove your point - I quess you failed to see Wal-mart's rebuttal to the Union propaganda that many people hear.

Drag on the economy - prove your point. I quess you know more than Alan Greenspan.

How much money are you really saving? Why don't you ask the 100 million shoppers a month who shop at Wal-Mart. Do you actaully believe they shop their for less value? The key word is "value".
 

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